The Effect of Party Autonomy in Extra Territorial Jurisdiction

Abstract

Nowadays, particular importance attaches to the choice of court agreement as a common clause in international commercial contracts. Nevertheless, for not taking point regarding the validity of such clauses in some legal systems, there are some challenges and ambiguities about it. One of most important problems is the conflict such agreements with sovereignty of state principle and concept of public policy. This essay with surveying the concept of choice of court agreement and also studying some related conventions and regulations shows this agreement is acceptable based on the party autonomy principle. Also by changing the philosophic basis of extra territorial jurisdiction’s rules, jurisdiction agreement doesn’t hurt sovereignty of states. The extra territorial jurisdiction rules is not related to public policy in all cases to say the jurisdiction agreement against them is invalid. The approach of some legal systems such as European Union and international instruments support the view of essay.