2005 Choice of Court Convention in force

The Hague Convention of 30 June 2005 on Choice of Court Agreements (the Convention) last week entered into force in 28 States (Mexico and all Members of the European Union, except Denmark).

According to the Hague Conference on Private International Law, which coordinates and supports the Hague Conventions, the Choice of Court Convention has been designed to provide more legal certainty and predictability in relation to choice of court agreements between parties to international commercial contracts.

It ensures three things: a court chosen by the parties must, in principle, hear the case; any other court before which proceedings are brought must refuse to hear them; and the judgment rendered by the chosen court must be recognised and enforced in other Contracting States.

The Conference believes that the application of the Convention will deliver adequate responses to the increasingly pressing need in international transactions for enforceable choice of court agreements and their resulting judgments.