Glossary
Forum selection clause
A clause in a contract that says any disputes between the parties have to be brought in a specific court or location.
Forum selection clauses are common in business contracts and customer agreements. They can lock the parties into a particular state or even a particular court for any future lawsuits. Courts usually enforce these clauses unless doing so would be deeply unfair, would deprive a party of any real day in court, or would go against strong public policy. Mandatory clauses require disputes to go to the chosen forum, while permissive clauses just allow it. Reading these clauses carefully before signing matters because they can dramatically change where and how a dispute will play out.