Legal Question in Business Law in Delaware

What is the risk if change jurisdiction from US, where our company is registered, to a EU country in our B2B service contract?


Asked on 4/26/11, 9:40 am

2 Answers from Attorneys

Generally such a change is not advise. In the event of a legal dispute the laws of that EU country would be operative instead of American law. In addition, this may also mean that the venue could be shifted to that country, which in effect would obligate you to address any breach of contract claims in that country.

Needless to say that, with such change in contract terms, the cost and risk of having to deal with this contract in a foreign country would be very high, especially for a smaller outfit. It is highly recommended that you have have a business attorney review the contract before making any such fundamental changes.

Roman R. Fichman, Esq.

www.TheLegalist.com │ @TheLegalist

email: Info (at) TheLegalist (dot) com

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Disclaimer: This posting has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice. The post may contain errors, inaccuracies and/or omissions. You should always consult an attorney admitted to practice in your jurisdiction for specific advice.

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Answered on 4/26/11, 10:05 am
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I agree with the other attorney answer. Don't change jurisdiction without a thorough analysis of the impact of the laws of the new target country. And by "jurisdiction" what do you mean? Do you mean the laws of the target country will apply, that there will be venue in the target country if a dispute occurs, or both? Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 4/27/11, 6:56 am


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