JURISDICTION OF COURT
A court in deciding a dispute for International Contract may apply another country law.
It is possible that more than 1 country’s court have the authority to hear a particular case.
The authority of which country to hear the dispute depends on the relevant law of that country.
The commonly requirements are
- the contract is being performed or be performed in that country
- the defendant is within the area of that county
- the involve parties have agreed to submit themselves hear the case in authority of that country
Exclusive and Non-exclusive Jurisdiction
Exclusive clause ----
The hearing will be held in the particular country, if the “exclusive “ jurisdiction clause (the stated country that have the authority to hear the case)
is included in the contract.
Non-exclusive clause ----
Other county will still have the authority to hear the case. (Common law will give the effect of this clause).
* Exclusive jurisdiction law is preferable for purpose of certainty
BUT Country which has the jurisdiction of the case might not hear the case.
Reason: After analyzing the case, they think that it is more appropriate to hear the case in another jurisdiction court.
Factors to Consider:
1) The relative cost through the pending of the case
2) Inconveniences of the case before the hearing
3) Residence of the parties to the contract
4) The law which applied to the contract
5) Presence of ‘jurisdiction clause’
The court has the power to stop a party from proceeding in the foreign court:
Only if,
1) Pursue the foreign proceeding will lead to unfair and vexation.
2) Injustice to the parties
3) Remove the additional advantages
Taxation
Malaysia
Culture
Law
Reference
Incoterm
Contact
Home