Commercial Contracts: Clauses To Help Create Certainty In Uncertain Times

The current unpredictability of business relationships between Canada and the United States has caused concern for several Québec companies. To ensure greater certainty and stability when dealing with US business partners, commercial contracts can include clauses stipulating how and where eventual disputes will be resolved.

Provisions like these allow the parties to specify the law governing the contractual relationship and whether the dispute will be heard before the court of a specific jurisdiction or proceed by way of arbitration. These clauses can provide a degree of predictability, as courts are generally required to respect the will of the parties and their choices, subject to a few limited exceptions.