Tuesday, May 3, 2016

The termination of a forum selection clause.

Practice point:  The mere termination of a contract containing the clause does not mean that the clause is without effect .In order for a party to disregard it when the contract is terminated, there must be a clear manifestation of the parties' intent to terminate the clause along with the contract. The best evidence of what the parties intended is the plain meaning of the contract.

Student note:  Forum selection clauses are enforced because they provide certainty and predictability in the resolution of disputes, particularly those involving international business agreements.

Case:  Garthon Bus. Inc. v. Stein, NY Slip Op 03102 (1st Dep't 2016)

Here is the decision.

Tomorrow's issue:  Extending time and law office failure.