This form brings together several boilerplate contract clauses that work together to outline the laws that will govern all or parts of the contract and to determine the legal forum or jurisdiction for any claims that may arise under the contract agreement.
Ohio Putting It All Together - Governing Law and Jurisdiction Provisions
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FAQ
What if there is no governing law clause? If no governing law clause is included and a dispute arises, the court hearing the dispute is likely first to have to determine what law applies to the contract (and any non-contractual obligations) before it can resolve the dispute.
An entire agreement clause in a contract asserts that the contract constitutes the whole agreement between the parties and seeks to prevent the parties from relying on any preceding agreements, negotiations or discussions that have not been set out in the agreement.
Jurisdiction refers to the country whose courts are to apply the governing law. The governing law is the law to be applied by those courts.
The most obvious benefit of the inclusion of a jurisdiction clause is to eliminate uncertainty and, in some cases, to ensure that the jurisdiction in which a dispute is to be litigated is favourable to the parties involved.
A jurisdiction clause will appear in a business contract quite regularly. Jurisdiction clauses basically state that the parties involved in a contract have the right to settle legal disputes through adjudication.
Jurisdiction is important because if a court does not have jurisdiction over a case, it does not have the legal authority to pass judgment on the case.
Just as the basis of a tribunal's jurisdiction does not determine the law it has to apply, the law applicable in a case does not determine the tribunal's jurisdiction. The law governing jurisdictional issues is independent of the law applicable to the merits of a case.