Download a copy of Guide to drafting jurisdiction clauses.
Jurisdiction clauses should be a core part of commercial contract negotiations. They can have major impacts on the cost, speed and outcome of a dispute – yet they are often treated as a boilerplate to a contract, or given insufficient attention. Allowing parties to choose the forum in which a future dispute will be resolved provides them with certainty and protection should any problems arise.
A poorly drafted or ill-considered jurisdiction clause can risk consequences like costly satellite litigation over forum selection and parallel proceedings in multiple jurisdictions. These risks are amplified in cross-border transactions, where differences in legal systems, procedural rules and enforcement regimes can materially affect the outcome of a dispute.
We have prepared this Guide to give practical guidance and help parties draft effective jurisdiction clauses that are both enforceable and aligned with the parties' commercial objectives. The Guide covers the essential and optional components of jurisdiction clauses, including exclusive, non-exclusive and asymmetric formulations, as well as governing law clauses. Alongside best practice, we have highlighted common difficulties and pitfalls parties encounter when negotiating and drafting jurisdiction clauses.
The Guide can be read as a standalone document or in conjunction with Corrs’ Guide to Drafting Arbitration Clauses.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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