This week’s golden oldie on choice of jurisdiction is a companion piece to a recent one on choice of law. Search for other articles on this blog which deal with other aspects of these subjects, including use of arbitration.
A small, but important, contract-drafting point: imagine a contract clause that says that disputes will be subject to the jurisdiction of the English courts. Should we interpret this to mean that the English courts will have exclusive jurisdiction, or might it mean that the English courts have only non-exclusive jurisdiction?
A well-drafted contract will state explicitly which law and jurisdiction governs the contract, and whether the jurisdiction is exclusive or non-exclusive.
If the contract states that English jurisdiction is exclusive, the parties must go to the English courts. If a party starts an action in another court (let’s say in China), the English court may order that party to stop proceeding in the Chinese courts. If the order is not complied with, the English court may commit the non-complying party to prison for contempt of court.
If the contract states that English jurisdiction is non-exclusive, a party can ask an…
View original post 908 more words