What Does “Choice of Forum” Mean in a Contract?
A contractual provision specifying where disputes must be litigated or arbitrated.
Detailed Explanation
Choice of forum (or forum selection) clauses designate the court or arbitration location for disputes. They provide predictability but can also create disadvantages—being forced to litigate across the country is expensive.
Courts generally enforce forum selection clauses unless they're unreasonable or the result of fraud. Some clauses specify exclusive jurisdiction (only there) vs. non-exclusive (option to go there).
Example in a Contract
“The parties irrevocably submit to the exclusive jurisdiction of the state and federal courts located in Delaware for any disputes arising hereunder.”
Why It Matters
An inconvenient forum can make enforcing your rights impractical. Traveling across the country for hearings adds significant cost. Try to negotiate a forum near you, or at least neutral to both parties.
Related Terms
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