Agreed Dispute Jurisdiction Clause and Applicable Law Clause-World Credit Organization

7.5 Agreement on dispute jurisdiction clauses and governing law clauses

1. The method of agreeing that the court shall govern the dispute

1. It is agreed that the court where Party A is located shall have jurisdiction.

Add a clause to the contract: Matters not covered in this contract shall be resolved through negotiation between the two parties. If the negotiation fails, either party has the right to sue in the people's court where Party A is located.

2. It is agreed that the court at the location of Party B shall have jurisdiction.

Add a clause to the contract: Matters not covered in this contract shall be resolved through negotiation between the two parties. If the negotiation fails, either party has the right to sue in the people's court where Party B is located.

3. It is agreed that the court of the plaintiff shall have jurisdiction.

Add a clause to the contract: Matters not covered in this contract shall be resolved through negotiation between the two parties. If the negotiation fails, either party has the right to sue in the local people's court.

4. Default the jurisdiction of the defendant's court.

If the parties do not explicitly agree on the jurisdiction clause, the default law in our country is the "plaintiff versus defendant principle". If a party sues the other party, it should go to the court where the other party is located.

Second, the method of agreeing that the dispute will be governed by an arbitration institution

If the parties are unwilling to agree to a court to govern their dispute, they can also agree to an arbitration institution to make a ruling. Arbitration institutions generally disclose their arbitration standards to the public, and the arbitration standards generally contain recommended arbitration clauses. After adding the arbitration clause in the contract, the arbitration institution has obtained the arbitration jurisdiction over the disputes between the two parties.

The arbitration clause of the World Credit Organization [WCO] International Credit Dispute Arbitration Commission (Note: quoted from "ICE8000 International Credit Dispute Arbitration Standard", which is also known as the ICE8000 Arbitration Clause) is: "Any dispute arising out of this contract or any dispute related to this contract shall be submitted to the International Credit Dispute Arbitration Committee of the World Credit Organization [WCO], which shall conduct arbitration in accordance with the ICE8000 International Credit Standard System International Credit Dispute Arbitration Standard currently in force at the time of application for arbitration. The arbitration award is final and binding on both parties.”

Where a general CS clause has been agreed, the language of the arbitration clause may read: Any dispute arising out of or in connection with this contract which cannot be resolved through the internal complaints procedure shall be referred to the World Credit Organization [ WCO] International Credit Dispute Arbitration Committee, which will conduct arbitration in accordance with the ICE8000 International Credit Standard System International Credit Dispute Arbitration Standard currently in effect at the time of application for arbitration. The arbitration award is final and binding on both parties.

Third, the method of agreeing on the applicable law

If both parties belong to different countries or there are other foreign-related factors, when a dispute arises in the contract, it will involve the issue of which country's law is applicable. The parties can agree on the applicable governing law in the contract.

The way to agree on the applicable law is to add a clause in the contract: "Items not stipulated in this contract shall be governed by the laws of *country". Or: "Any disputes in this contract shall be handled in accordance with the laws of *country."

It should be noted that for foreign-related contracts, when specifying the court of jurisdiction and the applicable law, attention should be paid to the corresponding relationship between the two. For example, it cannot be agreed that the courts of our country will be under the jurisdiction and at the same time agree to deal with it according to the laws of the United Kingdom.

However, if it is agreed that an arbitration institution will resolve the dispute, the applicable law does not need to consider the place of registration of the arbitration institution. Because the arbitration institution is a private institution, it adheres to the principle of independence, and of course it should adjudicate the case according to the applicable law agreed by the parties. For example: Although the International Credit Dispute Arbitration Commission of the World Credit Organization [WCO] is registered in the United States, the parties may agree that the applicable law of the dispute shall be the law of any country such as my country or France.

Fourth, the significance of agreeing on the jurisdiction of the dispute

The agreement on the dispute jurisdiction clause is used to avoid the judicial trap carefully designed by the other party. Some scammers often have good social relations in their localities, and use local protectionism to evade legal sanctions.

Therefore, generally, the priority should be to agree on the jurisdiction of the court in the place where the plaintiff is located.

When agreeing to the jurisdiction of the plaintiff’s court, if a dispute arises, you should file a lawsuit in the local court as soon as possible. Otherwise, if the other party sues first, the other party’s court will first file the case, and you will have to go to the other party’s location to file a lawsuit. Energy consumption is relatively large.

V. Reasons for agreeing that the World Credit Organization [WCO] International Credit Dispute Arbitration Commission will arbitrate the dispute

We recommend that people agree to resolve disputes by the World Credit Organization [WCO] International Credit Dispute Arbitration Commission, because ICE8000 arbitration has the following characteristics in addition to other international arbitration features:

1. The parties involved provide evidence in good faith. During the arbitration process, the parties should provide evidence in good faith, otherwise, no matter when it is proved that the party has not provided evidence in good faith, the party will bear the responsibility for breach of trust.

2. The execution of the arbitration result is guaranteed by the credit system. If the parties fail to voluntarily perform the arbitration award, they shall bear the credit responsibility according to the ICE8000 standard. If the parties refuse to perform the arbitration result without justified reasons, they shall bear the credit responsibility of being jointly exposed in accordance with the "ICE8000 International Credit Standard System Joint Exposure Standard". (Another note, if the parties are respectively in our country or other contracting parties to the New York Convention, the parties can apply to the courts of our country for enforcement according to the international treaty. There are three international conventions on the recognition and enforcement of foreign arbitral awards: ①The 1923 Geneva Arbitration Clause concluded in 1923 Protocol": ② "Convention on the Enforcement of Foreign Arbitral Awards" concluded in 1927; ③ "Convention on the Recognition and Enforcement of Foreign Arbitral Awards" concluded in New York in 1958, referred to as the New York Convention. China officially joined New York on December 2, 1986 Convention, but there are two reservations, one is only applicable to awards made between the two contracting parties, and the other is only applicable to disputes arising from commercial legal relations.)

The above content is excerpted from "Building an Integrity Unit - ICE8000 Integrity Management" (written by Fang Bangjian, free to use, but please indicate the source)