<s>[INST] A German company, with its principal place of business in Frankfurt, Germany, decides to expand its operation to the United States and establishes a New York City office. The company has no dispute resolution provision in its operating agreement. When a dispute arises between a U.S. partner and a German partner, the U.S.-based partner asserts that the dispute must be resolved in New York City. The German partner, however, insists that German law applies and that the dispute must be resolved in Frankfurt. Describe the legal principle applicable to this situation?[/INST]