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CMA Foundation · Fundamentals of Business Laws and Business Communication · Legal Aspects of Business Communication

Mehta Exports signs a long supply contract with a buyer in another country. Which clause is MOST useful to decide in advance which court or forum will handle any dispute and under which country's law?

A jurisdiction and governing law clause is most useful because it fixes in advance the court or forum and the country's law applicable to disputes. Force majeure, confidentiality and entire agreement clauses deal with excused performance, secrecy and contract scope instead.

  1. AForce majeure clause
  2. BJurisdiction and governing law clauseCorrect
  3. CConfidentiality clause
  4. DEntire agreement clause

Explanation

A jurisdiction and governing law clause fixes where disputes are heard and which law applies. A force majeure clause excuses performance due to extraordinary events, confidentiality protects information, and an entire agreement clause says the written contract is the whole deal; none fixes the forum.

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