Contract law jurisdiction

A jurisdiction agreement (also known as choice of court agreements) is an agreement setting out which court will hear a dispute between the parties that have entered into the agreement. Such agreements are commonly entered into as part of a contract between the parties, alongside an applicable law clause.

Jurisdiction clauses in contracts In most cases, contracts will include jurisdiction clauses. In these clauses, the parties decide which country's courts will hear any disputes that arise under the contract. This means parties can avoid jurisdictions that they consider less desirable or predictable.

What is the difference between a jurisdiction and a contract?

If a contract states these three provisions, the point is to provide additional certainty regarding the issues

This results in parties waiving their rights in regard to where to file a lawsuit, and instead sets it in a certain forum agreed to in the contract

The jurisdiction is where a dispute will be dealt with

What is the difference between jurisdiction and governing law?

The jurisdiction is where a dispute will be dealt with

Governing law will indicate which state’s laws will be utilized to determine the outcome

A contract can file a lawsuit in one state but be decided under the law of a state across the country

Choosing which state is not generally a difficult negotiation to make