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ARTICLE · 28 AUGUST 2019

Can A Forum Selection Clause Divest Taiwan Courts Of Jurisdiction?

Saint Island International Patent & Law Offices
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Whether and to what extent is a foreign forum selection clause enforceable?

TaiwanLitigation, Mediation & Arbitration

Whether and to what extent is a foreign forum selection clause enforceable? Taiwan's courts take a liberal view of this question.  Parties to a contract are free to create such a clause to have their disputes tried at a foreign court even if the foreign court does not have inherent jurisdiction over the disputes, but the clause must meet a three-part test to get recognized as enforceable by a Taiwan court: first, the dispute must not be subject to exclusive jurisdiction of a Taiwanese court (e.g. a dispute over a piece of land in Taiwan); second, the foreign court must not be subject to a rule that prohibits against acquired jurisdiction through consent; and third, the clause must not be "obviously unfair."

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