Jurisdiction
The court or location authorised to hear and decide disputes under a contract.
Definition
A jurisdiction (or forum-selection) clause designates which courts may hear disputes arising from the contract. It provides predictability and avoids parallel proceedings in multiple countries. Within the EU, the Brussels I bis Regulation generally enforces an exclusive choice of court, while consumer and employee protections may override it.
Example
The parties agree that the courts of Amsterdam have exclusive jurisdiction over any dispute.
Why this is a business risk
A missing or poorly drafted jurisdiction clause can force you to litigate in a foreign court at great cost, or allow the other party to choose a favourable forum. Without an exclusive clause, the counterparty may start proceedings in a country where enforcement is slow or where local procedural law is unfamiliar.
How to manage it
- Include an exclusive jurisdiction clause so neither party can forum-shop when a dispute arises.
- Pick a court in a country where judgments are easily enforced, both domestically and in the counterparty's home country.
- Consider arbitration instead of litigation for international deals: arbitral awards are enforceable in over 170 countries under the New York Convention.
Legal references
Unless marked otherwise, references are to Dutch law (Burgerlijk Wetboek, the Dutch Civil Code); EU instruments such as the GDPR apply across the EU. This is general information, not legal advice. Other jurisdictions treat these concepts differently. Verify the current text and your situation with a qualified lawyer.
Frequently asked questions
Common questions about this term.