The is what is called a "choice of law clause" commonly incorporated in English contracts. In Anglo-American law, the term "choice of law principle ﹝法律適用原則﹞" is sometimtes referred to as "conflicts of law principle ﹝法律衝突原則﹞," whereby the court determines what law governs the dispute when the laws of two or more jurisdictions are in conflict with each other. In international private law, the choice is between the laws of two or more nations, and is in the area of 國際私法. In United States, the choice is mostly between the laws of different states, and can be translated into 法律適用.

In this clause, parties have explicitly agreed that the U.S. laws and the New York State laws will govern disputes arising out of the agreement and have excluded the applicability of laws of other nations and other states.

The sentence may be translated into: 本協議 ﹝合同﹞ 適用美國法律及紐約州法律﹝or 受美國法律及紐約州法律約束﹞，不論其
法律衝突原則﹝or 法律適用原則﹞如何規定。