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With a forum selection clause, you agree in advance on which court has jurisdiction should a conflict arise. This provides clarity and prevents surprises, especially in international business. However, limitations apply to consumers, and deviating from this afterwards is usually only possible if both parties agree.
What is a forum selection clause?
A forum selection clause designates the court with jurisdiction in the event of a dispute in the agreement, for example, 'the court in Amsterdam'. Without such a choice, the law determines which court has jurisdiction, which can have uncertain and sometimes unfavorable consequences. With a forum selection clause, you establish this in advance.
Why is it useful?
A choice of forum provides certainty and can give you a home advantage: you litigate before a familiar, nearby court rather than an unknown or foreign judge. Especially with cross-border contracts, it prevents you from unexpectedly ending up in a different legal system. The clause is therefore often primarily of interest to one party.
Pay attention to the borders
With regard to consumers, you cannot freely choose the competent court: a consumer enjoys protection and can often litigate in their own place of residence. Moreover, separate rules apply to international choice of forums (such as the European rules on judicial jurisdiction), which impose requirements on the validity of the clause.
Can I deviate from it afterwards?
A valid forum selection clause is binding on the parties. In principle, deviation is only possible if both parties wish to do so, or if the clause has not been validly agreed upon. Therefore, carefully and clearly stipulate the choice of forum in your contract or general terms and conditions.
Frequently Asked Questions
Why include a forum selection clause?
For certainty regarding the competent court and to prevent you from unexpectedly ending up before an unknown or foreign court.
Does my choice of forum also apply to consumers?
Limited. Consumers enjoy protection and can often litigate in their own place of residence.
Can I change my choice of forum afterwards?
In principle, only if both parties wish to do so or if the clause has not been validly agreed upon.
Arrange your choice of forum properly?
Our legal experts incorporate a watertight choice of forum and choice of law clause into your general terms and conditions and contracts. View our contract lawteam or schedule a free consultation.
