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Simple English definitions for legal terms
choice-of-exclusive-forum clause
Read a random definition: Bureau of Customs
A quick definition of choice-of-exclusive-forum clause:
A choice-of-exclusive-forum clause is a part of a contract where the parties agree on the location for any legal disputes that may arise between them. This clause helps to avoid forum-shopping, which is when someone tries to choose the most favorable court or jurisdiction for their case. It is different from a choice-of-law clause, which determines which laws will apply to the dispute.
A more thorough explanation:
A choice-of-exclusive-forum clause is a provision in a contract where the parties agree on the place or court where any disputes between them will be resolved. This is also known as a forum-selection clause.
For example, if two companies from different states in the US enter into a contract, they may include a choice-of-exclusive-forum clause that states any disputes will be resolved in a specific court in one of the states.
This clause helps to avoid forum-shopping, which is when a party tries to choose a jurisdiction or court that is more favorable to them. By agreeing on a specific forum in advance, both parties know where any disputes will be resolved, which can save time and money.