Jurisdiction clauses are often not examined as closely as they
should be. You should ensure that your agreements contain a
jurisdiction clause that nominates a convenient jurisdiction for
your business.
Jurisdiction clauses are often overlooked when parties are
negotiating the terms of a contract. Failing to properly consider a
jurisdiction clause can make enforcement of your rights a more
difficult and complicated process that it would otherwise be.
A recent matter before the Supreme Court of NSW highlights the
importance of closely considering the jurisdiction clause in your
contract.
What is a jurisdiction clause?
The purpose of a jurisdiction clause is to specify where any
disputes between the parties will be heard. These clauses can
either be exclusive or non exclusive; a non exclusive clause, like
the example below, is the most common.