The "consent to jurisdiction and forum selection" clause in a contract states the location where any disputes relating to the agreement will be resolved. This is a critical clause, particularly when parties to a contract reside in or do business in two different states, different countries, or in
You always want to have any action or proceeding take place where you reside or do business. If there is a dispute, you don't want to be hauled into court or into an arbitrator's office 300 or 3,000 miles away. This clause is particularly important if you are dealing with companies in foreign countries.
Here is a sample clause:
Consent to Jurisdiction and Forum Selection. The parties hereto agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated exclusively in the State and Federal courts located in the County of San Francisco, State of California. The aforementioned choice of venue is intended by the parties to be mandatory and not permissive in nature, thereby precluding the possibility of litigation between the parties with respect to or arising out of this Agreement in any jurisdiction other than that specified in this paragraph. Each party hereby waives any right it may have to assert the doctrine of forum non conveniens or similar doctrine or to object to venue with respect to any proceeding brought in accordance with this paragraph, and stipulates that the State and Federal courts located in the County of San Francisco, State of California shall have in personam jurisdiction and venue over each of them for the purpose of litigating any dispute, controversy, or proceeding arising out of or related to this Agreement. Each party hereby authorizes and accepts service of process sufficient for personal jurisdiction in any action against it as contemplated by this paragraph by registered or certified mail, return receipt requested, postage prepaid, to its address for the giving of notices as set forth in this Agreement. Any final judgement rendered against a party in any action or proceeding shall be conclusive as to the subject of such final judgement and may be enforced in other jurisdictions in any manner provided by law.
To put it plainly, this clause says that the parties have agreed that any disputes will be litigated solely in San Francisco, even if it's inconvenient for one party, and that any final judgment can be enforced anywhere else that is desirable.
Copyright © LegalDocs Online, Inc. All Rights Reserved.