Where is the boxing ring, Mike Tyson?

Say what?

I named this article title to try and grab your attention (hopefully now that I’ve got it, you’ll stick around). But there is some relevance to the topic I want to discuss though, so hang in there.

A boxing ring is where the fight happens. And courts are kind of like boxing rings, just a little less violent.

A jurisdiction clause within a contract is basically parties determining where the boxing ring will be.

We often look over this little clause thats usually down at the very end of a contract but its actually quite important.

And you will usually find that we advise that your jurisdiction clause should set the location as being exclusive.

Lets talk about this a bit more…..

What is a jurisdiction clause?

An exclusive jurisdiction clause limits disputes between the parties to the courts of one jurisdiction.  It is a provision in a contract by which the parties have agreed to refer their disagreements to designated legal systems.

Why have an exclusive jurisdiction clause?

Its kinda confusing, but all States and Territories of Australia have different laws. So that there is no confusion about which state laws will apply, the jurisdiction clause tells us what state or territory’s law will apply (or, if you’re in New Zealand, your jurisdiction will be New Zealand - there’d be no point making the jurisdiction Western Australia…..right?).

The parties can then identify which legal rules apply to any dispute and importantly, they will know where they can sue and be sued.

For example: If two parties contract for the sale of pineapples in Western Australia and their contracts clauses states that the jurisdiction will be of New South Wales courts.  The parties will be expected to travel to New South Wales to litigate the matter of which may have different laws on pineapples or different procedural rules. That doesn’t seem to make much sense, does it?

Do I need one….like, really?

Yeah, I reckon you should definitely have one.

If you don’t have a jurisdiction clause, the Court has some pretty complex rules and cases about what is the appropriate jurisdiction will be and how it is selected. Parties would need to litigate the issue of where the most appropriate “boxing ring” would be and that just adds a layer of complexity that you don’t need in your life! That causes delays in resolving the matter, and also costs you a pretty penny to have that happen (because you’d need someone like me to deal with it).

So, the bottom line is that there is a way that you can make sure both parties know, from the outset of entering into the contract, where the boxing ring will be.

This may be a little complicated if, say, you’re from the Gold Coast and travel to Byron Bay for work. In that instance, you’re best to contact me and have a chat about what to do. But for the most part, you’ll already know which state or territory suits you and your clients best. But remember, just because it is obvious to you, doesn’t mean to say that it is obvious to a court!

We’ve got you covered!

The good news is that our Supplier-Specific Terms and Conditions Package has the jurisdiction clause sorted for you. Yep, its there for you, in word format, and all you need to do when it comes to the jurisdiction clause is to insert the state or territory that suits you the best. The rest of the wording has been done for you.

You can find our contract templates here: https://www.eventlaw.online/store-home

If you want to stay up to date with all things events and law, please join our closed Supplier Only Facebook Group “The Wedding And Event Lawyer” here: https://www.facebook.com/groups/theweddingandeventlawyer/

Also, I’m holding a pretty cool seminar about Employees and Independent Contractors on 25 October 2022 - check the link out and make sure ou register to get access to the Zoom link Click Here!