Avoid costly disputes – regulate jurisdiction clauses in your international agreements
When Swedish companies enter into agreements with foreign parties, it's easy to focus on the deal – but what happens if a dispute arises? Without clear rules about which country's courts (or whether it should be an arbitral tribunal) should handle potential disputes, and which law should apply, you risk a costly and protracted process in an unfamiliar legal system. Here, Lindahl's experts review the importance of jurisdiction clauses and provide a real-life example.
Why jurisdiction clauses are important
If your agreement lacks regulation of competent forum, the question is determined according to complex rules on private international law. The result may be that the process is delayed and that your Swedish company is forced to litigate abroad – with increased costs, practical difficulties and, in the worst case, a legally uncertain trial.
A real example
Lindahl recently represented a Swedish company in a protracted process against a foreign counterparty. The foreign company claimed that the Swedish court did not have jurisdiction and requested that the action be dismissed. The courts then had to interpret the meaning of a disputed contractual term, where the parties had different views on whether it constituted an agreement on court jurisdiction. We successfully assisted the Swedish company, which was granted the right by all legal instances to have its case tried by a Swedish court.
Three things to consider:
Predictability creates security
Without an agreement on competent forum, courts in several countries may have jurisdiction. A well-drafted jurisdiction clause clarifies both which country's court should try disputes and which law should apply.
The regulatory frameworks are complex
Many factors affect which court will have jurisdiction. Agreeing on this in advance eliminates uncertainty and gives you control over the process.
Avoid delays
Objections regarding court jurisdiction can delay a process considerably. The court must first examine its own jurisdiction before the substantive examination can begin – a clear clause reduces the risk of such procedural disputes.
Does your company have cross-border agreements?
Lindahl has extensive experience of international disputes and can help you secure your agreements. Contact our experts in dispute resolution for advice on private international law.
Want to know more?
Contact Lindahl’s experts for advice on dispute resolution and international agreements.
Carousel items
-
News articles
4/1/2026
Insights from Oxford: climate transition is business-critical
When leading experts gathered in Oxford for this year's Climate Policy Monitor symposium, one thing was clear: climate is no longer purely a regulatory issue – it is business-critical.
-
Knowledge
3/30/2026
How to deal with bankruptcy during legal proceedings
What happens to ongoing legal proceedings if the opposing party goes bankrupt? We explain the estate's right to take over the claim and the risks involved.
-
Cases and transactions
3/23/2026
Lindahl advises Seafire on the acquisition of Splendor Plant AB
Lindahl has acted as legal adviser to Seafire in connection with the acquisition of all shares in Splendor Plant AB, the Nordic region's leading wholesale plant nursery, and in negotiations regarding an expanded financing agreement with its existi...
-
Portraits
1/20/2026
How I use AI in my daily work as a lawyer
AI is no longer the future – it is everyday reality. Johanna Karlsson, lawyer and senior associate at Lindahl, talks about how AI tools such as Legora have become a natural part of her workflow.
-
Read more news and insights?