A plaintiff files a breach of contract lawsuit in federal court based on diversity jurisdiction. There is no relevant federal statute or constitutional provision addressing the breach of contract. Which set of laws does the federal court apply to determine the substantive rights of the parties?
Federal statutory law
The substantive law governing the issue in the court's jurisdiction
In diversity cases without applicable federal law, federal courts apply the substantive law that governs the underlying issue, which is typically the law of the jurisdiction where the court is located. Federal common law does not generally apply to contractual disputes.
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Multistate Bar Examination
Civil Procedure
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