Here, too, a number of factors must be taken into account when developing such a clause: “SCCA Newsstand is an excellent legal resource. I particularly like the user-friendly format that I find very effective! As a general rule, a jurisdiction clause provides for either an exclusive or “non-exclusive” jurisdiction. Interpretation of these concepts may vary across legal systems, but overall “exclusive jurisdiction” means that only designated courts have jurisdiction to decide disputes; “Non-exclusive jurisdiction” means that these courts may hear litigation, but the parties are not prevented from bringing an action in other jurisdictions or if they deem it appropriate. The information provided should not be a comprehensive review of all legal and practical developments, nor should it cover all aspects of these issues. Readers should be legally advised before applying to specific topics or transactions. Each party to this Agreement unequivocally agrees that the courts of England are not exclusively competent to decide, resolve and/or decide disputes, controversies or claims (including non-contractual disputes, controversies or claims) arising from or related to this Agreement, including matters relating to their existence, validity, formation or termination. To this end, each party submits irrevocably to the jurisdiction of the English courts. Exclusive jurisdiction clauses limit litigation to the courts of a court. An exclusive jurisdiction clause reaches relative security: you know where you can take legal action and be sued. They also offer greater protection, as it is less likely that another court will accept jurisdiction when faced with an exclusive jurisdiction clause. However, these agreements are not considered to be exclusively governed by the Hague Convention on the Choice of Judicial Agreements. Given that this may be the mechanism by which we will maintain mutual applicability within the EU as soon as the UK leaves the EU, it may be not advisable to qualify two courts as exclusive jurisdiction in EU-related transactions. Also keep in mind that there is a risk of parallel proceedings outside the EU, especially in the case of a counterclaim against a claim, the application before a court and the counter-action before another court.

Do you want all possible disputes to be decided by a particular court? If so, the clause should be extended to avoid controversy over whether a particular dispute is within the scope of the clause. Under English law, the courts have given clear guidance on this issue and, to the extent that the clause is broad to cover all disputes arising from an agreement, including any disputes relating to its existence, validity or termination, should suffice.11 A legal clause does so by explicitly determining the choice of law applicable by the parties. Ideally, professional advice should be obtained on the form and content of existing legislation and jurisdiction clauses for a given contract. However, if this is not feasible, the principles outlined above can help to avoid some of the problems encountered. Court clauses should always be explicitly included in the contract7.7 It is essential that a contract clearly covers the parties` agreement on a particular jurisdiction. Do not leave invoices sent after the conclusion of the contract or fall into the trap of exchanging the parties` standard terms, which virtually guarantees a “fight of forms” on their terms and exclusive jurisdiction clause.

Close Menu