Crucial Exams

Multistate Bar Examination Practice Question

A plaintiff files a diversity jurisdiction case in federal court, alleging breach of contract against a defendant. The contract was executed in State X, which has distinct rules for contract interpretation under its state law. Which law should the federal court apply to interpret the contract?

  • The federal court applies the law of the defendant’s home state for contract interpretation.

  • The federal court applies the substantive law of State X for contract interpretation.

  • The federal court applies federal statutes governing all contracts.

  • The federal court applies federal common law for contract interpretation.

Multistate Bar Examination
Civil Procedure
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