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ARTICLE · 30 APRIL 2021

Beware – Exclusive jurisdiction clauses in your contracts

You should ensure that agreements contain a jurisdiction clause to nominate a convenient jurisdiction for your business.

AustraliaLitigation, Mediation & Arbitration

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.

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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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