Private International Law - Jurisdiction clauses and Choice of Law Clauses

One of the common issues in international contracts disputes whereby parties are located in different countries includes the interpretation of jurisdiction clauses and choice of law clauses. These clauses set out the parties' election of the law that is intended to apply to the contract and the location that disputes under the agreement will be determined. These clauses play a play a part in most professionally drafted agreements and should be considered carefully as a separate system of law may apply to the agreement, with unintended results.

The wording of these clauses tend to be variations on a theme, but generally read to something to the effect: 'This agreement shall be governed by the laws of [country]. Disputes under this agreement shall be determined by the courts of [country].'

Private International Law

Private International Law is concerned with cases with a foreign element, for instance, where an agreement contains some connection with a foreign country. It may be that a party to an agreement is located in the foreign country or goods to be supplied under an agreement are to be delivered to foreign country. This foreign connection may raise issues with some system of law other than English law.

Jurisdiction Clauses

Jurisdiction clauses set out the parties' chosen country to resolve disputes, that is which court system will hear a case. Rather than simply name a court system in such clauses, the parties may agree to set the court system under the agreement to the exclusion of all others.