Rise in the Freedom of Contract: Development and Enforceability of Forum Selection Clauses

Abstract

Corporations and business houses of the present day require sound redressal mechanisms to mitigate commercial disputes with ease and efficiency. „Forum selection clauses‟ are an easy way out of the turmoil often faced by firms during contractual disputes. Traditionally, the United Kingdom and the United States of America have been very restrictive about enforcing forum selection clauses, however liberalizing it very recently. This article through doctrinal study shows the present situation for forum selection enforcement in India and United States. Courts in India generally have followed the trend as laid down in the United States. There have been diverse judicial interpretations regarding validity of forum selections clauses across the common law system. The article discusses the judicial interpretations which has led to the evolution and development of such contract clauses.