Important Contractual Provisions

A recent North Carolina case, Perficient v. Pickworth (8/6/12) points out the importance of including provisions in business and employment contracts under which the parties agree where litigation will take place (a forum selection clause) and a further provision that the parties consent to jurisdiction in such forum.

Many contracts include a choice of law provision, which identifies the state or other law which will control in any dispute related to interpretation and enforcement of the agreement. But if a court lacks jurisdiction over the parties, or venue is more convenient in another location, legal action may be initiated in or transferred to, a different state, notwithstanding the choice of law provision.

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