Jurisdiction In An Agreement

“The parties subject the courts to the exclusive jurisdiction of []any dispute that arises from the agreement or in connection with this agreement.” However, in its decision of 5 September 2018, the Court of Cassation quashed the judgment on appeal on this point, stating that “the provisions of Article 48 of the French Code of Civil Procedure on arbitration clauses do not apply to arbitration clauses.” Sometimes the parties choose to resolve disputes through arbitration, in which case they include a compromise clause in their contract (see our September 2007 e-briefing for advice). However, on other occasions, the parties are willing to rely on the courts to deal with disputes. In which case the question arises: which courts? As with current legislation, there is a risk of costly, time-consuming and time-consuming challenges to whether disputes should be dealt with in the courts of country A or country B, as well as the risk of seeing multiple claims simultaneously in several different jurisdictions. “When a dispute referred to an arbitration tribunal on the basis of an arbitration agreement is brought before a national court, the court must declare itself incompetent, unless the matter has not yet been brought before the arbitration tribunal and the arbitration agreement is manifestly unenable or manifestly inoperable. Regardless of what you choose, make sure that the jurisdiction clause clearly reflects your choice. If, for example, you refer your disputes to the exclusive jurisdiction of the English courts, use the word “exclusive.”13 If you opt for a non-exclusive clause and wish to become a simultaneous proceeding in a number of jurisdictions, make sure that the wording reflects that notion (see hybrid type clause below). If you wish to be able to take legal action in another unidentified jurisdiction, even after the other party has filed a legal action in the aforementioned court, it should also be specified in the drafting. While a regulatory clause defines the country`s laws applicable to an international treaty, a jurisdiction clause determines which courts in the country should rule on a dispute. The inclusion of a jurisdiction clause avoids preliminary battles to determine where a case should be tried or the situation of parallel disputes in several jurisdictions. Ideally, professional advice should be obtained on the form and content of existing legislation and jurisdiction clauses for a given contract.

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