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Asymmetric jurisdiction clauses: when will they be effective?

6 May 2025 / Author(s): Emily Fox , Maura McIntosh , Vanessa Naish , Ceri Morgan , Tiphaine Leverrier
Issue: May 2025 / Categories: Feature

Asymmetric jurisdiction clauses (also known as unilateral or one-way clauses) allow one party greater choice than the other as to the courts in which proceedings can be brought if a dispute arises under the agreement. Such clauses are often used in finance agreements, where they typically require an obligor to bring claims in a named jurisdiction, but permit the finance parties to sue in any competent court. This gives the finance parties flexibility to choose an appropriate jurisdiction once a dispute arises depending on where the counterparty may have assets at that time.

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