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Jurisdiction clause
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Term: jurisdiction clause

1.

A jurisdiction clause is a provision in a contract that sets out the country within which disputes arising under the contract will be heard and determined. Jurisdiction clauses should be distinguished from choice of law clauses as the law of the contract may differ from the country within which disputes are heard.

In England, a standard form of jurisdiction clause that goes as far as is possible to prevent disputes being heard in other jurisdictions, "The parties irrevocably submit to the exclusive jurisdiction of English Courts for the determination of disputes arising under this contract". Such clauses are referred to as exclusive jurisdiction clauses. The parties may also agree to the non-exclusive jurisdiction of a country, which does not prevent legal proceedings being brought in foreign countries.

Anti-suit injunctions may be available to prevent off-shore legal proceedings in the event that the parties have agreed to a jurisdiction for disputes to be heard to the exclusion of all others.

Jurisdiction clauses may be expressed in a variety of ways and with different degrees of particularity. An exclusive jurisdiction clause may be, 'The parties irrevocably submit to the jurisdiction of English Courts', and a non-exclusive jurisdiction clause as, 'The parties submit to the jurisdiction of English Courts'.

Usage: The parties agreed that the jurisdiction clause would select English Courts for the resolution of disputes under the contract.

Related Words: choice of law clause; contract; lex loci solutionis; lex loci contractus; lex situs.


 

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