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As the Restatement (Second) of Conflict of Laws § 201 states, the effect of misrepresentation, duress, undue influence and mistake upon a contract is determined by the law selected by application of the rules of the Restatement (Second) of Conflict of Laws §§ 187-188. In turn, Restatement (Second) of Conflict of Laws § 187 allows the law of the state chosen by the parties to govern contractual rights and duties unless the chosen state lacks a substantial relationship to the parties or transaction or applying the law of the chosen state will offend a fundamental policy of a state with a material greater interest. In VGS, Inc. v. Castiel, 2003 Del. Ch. LEXIS 16, 2003 WL 723285, at *7 n.29 (Del. Ch. Feb. 28, 2003), Vice Chancellor Lamb cited § 201 of the Restatement (Second) of Conflict of Laws with approval, noting that it stood for the proposition that the law governing the agreements also governs fraud and negligent misrepresentation claims seeking relief for the wrongful inducement of the contract. Id.
Other courts have applied § 201 in similar circumstances. See Tel-Phonic Servs., Inc. v. TBS Int'l, Inc., 975 F.2d 1134, 1142 (5th Cir. 1992) ...
