What Does “Jurisdiction” Mean in a Contract?
The geographic location and courts that have authority to hear disputes arising from the contract.
Detailed Explanation
Jurisdiction clauses specify where lawsuits can (or must) be filed. "Exclusive jurisdiction" means only those courts can hear disputes; "non-exclusive" means those courts can hear disputes but so can others.
Jurisdiction affects convenience and cost - being sued in a distant location increases expense. It can also affect which procedural rules apply and how quickly cases are resolved.
Example in a Contract
“The parties irrevocably submit to the exclusive jurisdiction of the state and federal courts located in New York, New York for any disputes arising under this Agreement.”
Why It Matters
Jurisdiction determines where you might have to litigate. Being forced to sue or defend in a distant location is expensive and inconvenient. Try to ensure any exclusive jurisdiction is reasonably accessible to you.
Related Terms
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