Choice of Court Agreements: Update


Since October 1, 2015 the Hague Convention of 30 June 2005 on Choice of Court Agreements is in force. At present it is binding within the EU (except Denmark) and Mexico. The USA and Singapore have signed it, but not yet ratified. The Convention aims at ensuring the effectiveness of choice of court agreements (also known as “forum selection clauses” or “jurisdiction clauses”) between parties to international commercial transactions. In order to manage risk, parties often seek to agree in advance on how disputes arising out of a transaction between them will be resolved. In some cases, the parties will refer the dispute to arbitration. In others, they will agree to litigate before a designated court. However, choice of court agreements are not always respected under national rules. The Convention seeks to rectify this situation. Its success will be dependent on the willingness of big economic players, esp. the US, to ratify. We will keep you informed on the development.

Singen, 08.03.2016

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Dr. Dirk Struckmeier

Company Law And Commercial Law, Distribution Law, International Legal Relations, Law Of General Terms And Conditions Of Business, Mergers And Acquisitions (M & A) / Corporate Restructuring, Product Liability And Product Safety, Professional law / Professional Liability of tax accountants, auditors and attorneys – at law, Transformation Law
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