Legal Question in Credit and Debt Law in California
In a country outside U.S. person A lends large amount to Person B for business development without any contract. Person A flees to U.S. and Person B finds Person A. Both are foreigners/non-nationals in the U.S. Person A is currently living in Los Angeles. Person B wants to get a contract signed by Person A. What should be the forum selection clause (if any) in view of the possibility that Person A may flee to another country again? Is it possible to include in a contract that "an aggrieved party can take a legal action in the jurisdiction where the other party resides or has assets?" or a clause that would state that "Failure to meet undertakings can be considered as acting in bad faith for unjust enrichment. Such failure is subject to criminal prosecution in court of law within and outside of the USA."
2 Answers from Attorneys
Do not draft the contract yourself. Consult an attorney.
I agree you should have an attorney draft the contract. But some comments on your Q's:
Parties can generally agree to any forum they want to, so long as that forum has some basis to exercise jurisdiction. If one of the parties was in CA when the contract was signed, then CA would be a logical forum.
You could include a clause that legal action can be taken wherever Party A resides or has assets. Generally, a nation or state where he lives would have jurisdiction anyway.
You could also include the last clause you suggest. But the parties do not have the authority to decide what is or is not subject to criminal prosecution. Only the state can make such a decision.
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