Product Update

Forum Selection Provisions Discussion Updated in Contractual Risk Transfer

Do you know the difference between a mandatory forum selection provision and a permissive forum selection provision? Do you know why it is preferable to include a mandatory forum selection provision in your contracts? Enforceability of forum selection provisions is heavily influenced by whether the clause is mandatory or permissive. As a general rule, courts will enforce forum selection clauses unless it is unreasonable to do so. However, the presumption in favor of enforceability only applies if the forum selection clause is mandatory. The Forum Selection Provisions section, updated in this release of Contractual Risk Transfer, contains an expanded discussion regarding enforcement of these clauses, including how determining whether a forum selection provision is mandatory or permissive is a key step of a court's analysis.

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