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Contract/Agreement State Jurisdiction


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Our Agency Agreement has a clause in it that states the Agreement is commanded by our states' laws:

"This agreement shall be governed by the laws of Georgia and Client agrees to submit to the personal jurisdiction of the courts of Georgia and that should judicial action ever become necessary, venue selection will be given to the prosecuting party."

We have a new client who is wanting to change this to their state of California.

Anybody ever run into this problem before? If so, how did you handle? Our main concern, of course, is we are not familiar with California contract laws, etc. It should be noted we currently do business in California as well as dozens of others states without anyone ever asking for this change. Thanks!

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Hi Jay:

I agree that signing a contract with jurisdiction in a state you're not familiar with could put you in a compromising situation should something arise. I would recommend speaking with your attorney before agreeing to the change so he/she can evaluate the laws in GA and CA to see if you would be at a disadvantage in that state should there be a lawsuit.

You could also ask about an arbitration clause as an option.


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