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In contract law, a forum selection clause (sometimes called a dispute resolution clause, choice of court clause, governing law clause, jurisdiction clause or an arbitration clause, depending on its form) in a contract with a conflict of laws element allows the parties to agree that any disputes relating to that contract will be resolved in a specific forum.
The Rome I Regulation constrains the choice of law for special types of contracts. With a view to the weaker parties, such as consumers, employees and insurants, special choice of law rules are laid down by articles 5-8. The most important rules for companies, mostly closing contracts with consumers, are listed in Art. 6.
The combined clause would include the choice of law that is to govern any dispute arising under the agreement and the choice of forum where disputes will be heard. [4] Once implemented, a choice of law clause will generally be upheld by courts, as long as it is bona fide, legal, and not contrary to public policy. [5]
When a case has connection to more than just a single state, the forum state's choice of law principles generally guide the selection of what place's law will apply. Parties to a contract may seek to prevent forum shopping by inserting a forum selection clause or a choice of law clause in their contract. Such clauses are now generally enforced ...
But if that second state has choice-of-law rules requiring it to apply the forum law, a difference in outcome might arise depending on where the plaintiff invokes jurisdiction. Whether a difference emerges depends on whether the other state operates a single renvoi system. A single-renvoi forum always refers to the other law's choice of law rules.
In purely domestic cases, this poses no difficulty because a judge will freely move from one domestic law to another to resolve the dispute. But in a conflict case, the question is whether the incidental question is resolved by reference either to its own choice of law rules, or to the same law that governs the main issue (the lex causae).
An exception in comity exists: The agreement will not be held valid in the forum country if it violates the law of the forum country, or if it violates the law of nature, or if it violates the Law of God; A contract may be deemed valid in lex loci contractus, but if it is a revenue law of that state it will not be enforced in the forum state.
Each state, therefore, produces a set of rules to guide the choice of law, and one of the most significant rules is that the law to be applied in any given situation will be the proper law. This is the law that seems to have the closest and most real connection to the facts of the case, and so has the best claim to be applied. The term "proper ...