Forum Selection Clauses Bring Certainty — But With Risks

Law360, New York (November 12, 2013, 1:02 PM ET) -- A well-drafted forum selection clause can provide companies and individuals, especially those dealing in an international market, with certainty about the location of litigation arising out of a contractual relationship.

While these clauses sometimes identify a neutral jurisdiction, frequently, the choice of the location is offered in negotiation by "outside" entities to obtain access to a foreign market where the native participants may not contract internationally if they believe they could be sued in a jurisdiction other than the one of their choosing.

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