Arbitration, jurisdiction and other contract clauses


When entering into a commercial contract with another party there are certain considerations that should be taken into account. For example, arbitration, jurisdiction and limitation-of-liability issues should all be considered.

It may be worth inserting an arbitration clause into the agreement with the other party. This is because commercial legal disputes can be very lengthy, expensive and potentially damaging to the reputation of a business. Any disputes that arise can be resolved confidentially if you use arbitration.

Jurisdiction issues should also be taken into account, particularly in agreements with overseas businesses. In international agreements, you should carefully consider whose law should govern any disputes that arise. You do not want to have to defend a claim in a foreign country under foreign law if you can avoid it. You should try to agree jurisdictional issues with the other party before entering into the agreement.

Limitation of liability issues must also be considered before entering into a commercial contract. From a seller or supplier’s perspective, you want to limit your liability under the contract to as great an extent as is legally possible. From a buyer’s perspective, you do not want to allow the seller to limit liability at all. If they do, you want to at least negotiate a discount on the asking price.

Arbitration, jurisdiction and limitation of liability clauses are all subject to legal challenge in courts of law. If you want to challenge any of these clauses, or create legally binding clauses, you should contact a solicitor.

If you would like to obtain legal advice and information on arbitration, jurisdictional and liability issues in commercial contracts, Caven can put you in touch with a local specialist commercial / arbitration solicitor free of charge. So, if you have any questions or would like our help in finding local commercial / arbitration solicitors please call us on 08001 221 2299 or complete the web-form above. 

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