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Legal Update

Jurisdiction clauses and multiple contracts – will you have to fight in the other side’s backyard when a dispute arises?

7 February 2018
Mayer Brown Legal Update

Home advantage is often an important factor in sport. Similarly, in cross-border deals, parties often wish to ensure that disputes will be dealt with in their own country or, at the very least, a neutral country which has no links to either party and has a system of law with which both parties are familiar. Issues can arise when cross-border parties sign more than one contract to cover different aspects of their relationship. The agreements may also be entered into by different companies within their respective groups. Where multiple transaction documents are agreed between parties based in different jurisdictions, careful drafting is required to ensure certainty of jurisdiction in case of disputes.

This point was well made in the recent judgment of the High Court of Hong Kong in Madison Communications Private Limited v. Le Ecosystem Technology India Private Limited [2017] 5 HKLRD 284. The case concerned a commercial dispute involving Indian and Hong Kong companies that had signed more than one contract to govern their relationship.

Authors

  • Rod Brown
    Partner
    T +65 6327 0636
  • Stanley Y. P. Tan
    T +65 6327 0652
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