The European Court of Justice facilitated jurisdiction agreements for international business partners with its ruling on November 24, 2022 (Case No.: C-358/21).
In commercial law, the question of jurisdiction also plays an important role in cross-border business relationships. This is because the choice of jurisdiction can be crucial to the outcome of a legal dispute. Therefore, it is all the more important to ensure that a jurisdiction agreement reached between the parties is also effectively concluded. Therefore, a jurisdiction agreement should stand on legally secure grounds, explains the commercial law firm MTR Legal Rechtsanwälte, which advises its national and international clients also in commercial law and contract law.
With its decision of 24.11.2022, the ECJ contributed to making it easier to effectively regulate a jurisdiction clause contractually among businesspeople. Accordingly, a jurisdiction agreement in the general terms and conditions is already effectively agreed if the written contract contains a hyperlink that refers to the GTC and the GTC can be viewed and downloaded online.
In the case before the ECJ, a company based in Belgium and a company in Switzerland had concluded a commercial contract. The contract contained a hyperlink to the GTC of the company in Switzerland, which also included a jurisdiction clause. The GTC were neither provided in writing to the Belgian company, nor were they expressly accepted by clicking at the conclusion of the contract. When the legal dispute arose, the Belgian company did not want to accept the jurisdiction agreement in favor of the company based in Switzerland.
The case eventually landed before the ECJ. It ruled that the jurisdiction agreement was validly concluded. It reasoned that it was possible to view the GTC through the hyperlink in the written contract. Explicit acceptance by clicking was not necessary. This should also facilitate business transactions and contract conclusion. Even if the written form is still required for the main contract.
Experience in commercial law and contract law attorneys advise at MTR Legal Rechtsanwälte.
