Forum Selection Clause

In one sentence

A contract provision specifying which court or jurisdiction will hear any disputes between the parties.

Plain English

When parties sign a contract, they can agree in advance about where any lawsuit will be filed. A forum selection clause says something like 'any dispute will be resolved in the courts of New York' or 'in the federal courts of California.' This gives both parties predictability and prevents one side from suing in an inconvenient or distant location. Courts generally respect these clauses because they represent the parties' bargained-for agreement, though a clause may be unenforceable if it's unreasonably unfair to one party.

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Example

An online retailer's terms of service include a forum selection clause requiring all disputes to be filed in Delaware state court. When a customer in Florida wants to sue, they must file in Delaware, not Florida.

Used in a sentence

“The forum selection clause in the contract required all disputes to be litigated in Texas, not California.”

Related terms

Contract

A legally binding agreement between two or more parties to do or not do something.

Choice of Law Clause

A contract provision stating which state's or country's laws will govern the interpretation and enforcement of the agreement.

Arbitration

A private dispute resolution process where an impartial third party (arbitrator) hears evidence and makes a binding decision instead of going to court.

Boilerplate

Standard, pre-written contract language used repeatedly in many agreements without customization.

Boilerplate Clause

Standard, repetitive contract language used in many agreements without customization.

commencement of proceedings

The official start of a lawsuit or criminal case in court.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.