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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 court must balance convenience against the plaintiff's choice of forum. In other words, if the plaintiff's choice of forum was reasonable, the defendant must show a compelling reason to change jurisdiction. If a transfer would simply shift the inconvenience from one party to the other, the plaintiff's choice of forum should not be disturbed.
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 ...
How choice of law clauses are interpreted may vary by forum. In Delaware, a standard choice of law clause can cover liability arising in either tort or contract in order to avoid uncertainty. [ 19 ] [ 20 ] In New York, the express language of the provision must be “sufficiently broad” as to encompass the entire relationship between the ...
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.
This articles also says that in absence of an explicit choice of law, a protected consumer contract is governed by the law of the consumer's habitual residence. In Art. 6 (II) the involved parties are given the possibility of a free choice of law. But the choice of law is legally void, if the consumer protection is limited by this choice. [2]
Traditional public forums cannot be changed to nonpublic forums by governments. The use of public forums generally cannot be restricted based on the content of the speech expressed by the user. Use can be restricted based on content, however, if the restriction passes a strict scrutiny test for a traditional and designated forum or the ...
Klaxon Company v. Stentor Electric Manufacturing Company, 313 U.S. 487 (1941), was a United States Supreme Court case in which the Court applied the choice-of-law principles of Erie Railroad v. Tompkins to conflicts between laws of different states for cases sitting in federal court on diversity jurisdiction.