Definition - What does Lex Loci mean?
Lex loci translates literally into “the law of the place.”
When courts refer to lex loci, they refer to the legal doctrine teaching that the laws of the jurisdiction where an action transpired, an agreement was entered into, or litigation occurred should govern the court hearing an issue.
Lex loci is most often associated with contract law.
Justipedia explains Lex Loci
Lex loci flows from the notion that people should act in accordance with the law in whatever jurisdiction they physically find themselves. In simple terms, if two parties agree to a contract in California, it should be the law of California that governs their actions, and not the law of Oregon.
Sometimes, when two parties contract with each other in one jurisdiction, their contractual actions happen in other jurisdictions too. Jurisdictions hearing a case in which a contract was formed in another jurisdiction will apply lex loci, and use the laws of the place where the contract was formed to decide the case.