Can Indian Contracts Choose Foreign Laws and Jurisdictions? Urgent Help Needed!

Hi to all,

In a case where both contracting parties are from India, can they submit the governing law and jurisdiction of the contract to any other country other than India? It's urgent, and I would appreciate it if someone could provide me with some websites from where I can download information related to contracts and agreements.

Regards,
Prasad

Hi Prasad,

The information provided below may help to answer your question.

A volume of laws will be used to settle or fix the dispute. The governing law clause in contracts makes it very clear which law will govern the contract. Without a governing law, it can be very difficult to determine which law should be used to adjudicate the legal issues or disputes.

If the parties to the contract do not indicate which law applies to their obligations or contracts, or if circumstances arise in tort or some other area of law where the parties do not have an opportunity to specify the choice of law, the court will use other choice of law rules to determine what the governing law is.

These rules are designed to ensure that the jurisdiction with the greatest interest in deciding the dispute is able to apply its law. For example, Australians and Americans entered into a contract and both agreed to provide and receive services from their respective countries. However, they have to mention in the contract the law that will govern their contract. Otherwise, it will lead to ambiguity, and the court will need to interfere to decide the jurisdiction to try the case or dispute.

Note: If any counterparts would like to add to this, please go ahead.

Dear Friend,

The governing law and jurisdiction of the contract depend on the following:

1) Place of Execution of the contract.
2) Place where parties are residing.

In case both parties are residing in India and the contract is going to be executed in India only, then in no case will the governing law of another country be applicable.

Regards