Which Jurisdiction Clause?

The choice will depend upon your bargaining position. Going from strongest to weakest, the options are as follows. Click on the terms to see examples and for more information on the operation of each:

• exclusive jurisdiction clause, expressed to be for your benefit, naming the courts of your own country. This will allow you to sue in your own country, and in any other court which will take jurisdiction, but will limit the other party to suing only in your country
• exclusive jurisdiction clause, naming the courts of your own country. This will limit both parties to suing only in your country non-exclusive jurisdiction clause, naming the courts of your own country. This will allow both parties to sue in your country, but also in an any other court which will take jurisdiction exclusive jurisdiction clause naming the courts of a third country. This will limit both parties to suing only in that country
• non-exclusive jurisdiction clause, naming the courts of your opponent's country. This will allow both parties to sue in that country, but also in any other court which will take jurisdiction 
• exclusive jurisdiction clause, naming the courts of your opponent's country. This will limit both parties to suing only in that country,
• exclusive jurisdiction clause, expressed to be for your opponent's benefit, naming the courts of your opponent's country. This will limit you to suing only in your opponent's country, but will allow your opponent to sue in his own country, and in any other court which will take jurisdiction.

The rules as to when a court will or will not take jurisdiction are firm in civil law countries, but more flexible in common law countries, so in those countries the above rules are subject to the court's discretion. See When will a court take jurisdiction and proceedings brought in breach for for further details.

In addition to a jurisdiction clause, remember that in international contracts you must always have a governing law clause and you will usually want a service of process clause. Finally, whenever contracting with a State body, remember to include a waiver of sovereign immunity.

(NB: When the parties have chosen to arbitrate their disputes it may be that the drafting of their arbitration clause sometimes incorporates elements regarding certain aspects of the relationship between arbitration and the courts (e.g. a jurisdiction clause in support of arbitration, or an option to litigate). If you are looking for information on such matters, please refer to the arbitration section of this site).