Are one sided clauses legal and what are different ways to mediate an situation

Question

Explanation / Answer

One sided jurisdiction clauses are often included in avaiation financing and leasing documents. they provide that each of the paties to the documents submits to the jurisdiction of the court of a specified jurisdiction, but any finnce under a finance document or the lessor under lease document.

The primary purpose of one sided jurisdiction clause is to:

1. Provide certainity to party A that Litigation will be conducted in jurisdiction that is acceptable to it.

2. Allow party A to persue party B in any juris diction in Which Party B has any assets.

Example:

MMe X entered into private banking relationship with the edmound de Rothschild private bank in luxembourg. the banks standard terms and conditions were goverened by luxemberg law and included a one sided jurisdiction clause in the banks favour.

The french court of cassion ruled that the jurisdictionclause was of a potestive nature as regardsthe bank and that it was contrary to the object and finality of propogationof jurisdiction under article 23 of the brussels regulation pursuant article 1174 of the of the french civil code , a potestive condition is void for lack of mutuality of obligations.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.