If you don’t choose the location in your contract

Last week felt different - in a good way.

There were more client calls, more podcast recordings, and more moving pieces across the business.

Yet the best part was that I didn’t have to completely overhaul my schedule to handle it all. The rhythm was steady, and it reminded me of something that has been on my mind a lot lately: the power of boundaries.

Boundaries are not just about time management or saying “no” to people who drain you. In business, they are about spotting red flags early, protecting your position, and avoiding future headaches that can drain resources, energy, and opportunities.

And for IT founders, there’s one boundary that is almost always overlooked until it’s too late: jurisdiction.

Why Jurisdiction Matters More Than You Think

Most founders glance at contracts and skip over the “jurisdiction and governing law” section at the end. It looks like typical legal fine print - something lawyers throw in that doesn’t really affect day-to-day work.

But that small clause can completely shift the outcome of a dispute. It decides whether you’ll be arguing your case on your home turf or in a court you’ve never stepped foot in.

It can mean the difference between a manageable legal situation and one that drains your business before the first hearing even begins.

The Real-World Costs of Ignoring It

I’ve seen IT companies dragged into disputes in other states simply because they didn’t negotiate the jurisdiction clause. And the impact is brutal.

You suddenly have to hire local lawyers you don’t know, often at much higher rates.

You’re forced to understand laws and procedures that don’t match how you normally operate.

Travel, time, and logistics start stacking against you. By the time you’re even allowed to argue your case, you’re already behind.

Now imagine this scenario in cross-border deals. A company in India signs a contract with a client in the United States.

No one clarifies jurisdiction. The default? New York. And now, instead of solving technical issues, you’re fighting in one of the most expensive legal systems in the world.

That’s why jurisdiction is never just fine print. It’s a business decision with real financial and operational consequences.

My Way to Protect Yourself

Here’s how I recommend founders, especially in IT, SaaS, and cross-border projects, can set better boundaries around jurisdiction:

1. Jurisdiction

Always specify where disputes will be heard. Your default should be your home court, where you know the system, the lawyers, and the costs.

2. Governing Law

Make it clear which country’s or state’s laws will apply. Vague contracts give the other side room to maneuver.

3. Cross-Border Clarity

When working internationally, nail down upfront how different regulations will be handled. Otherwise, you risk a nightmare where multiple legal systems pull your case in different directions.

4. Arbitration First

Litigation is slow, public, and expensive. Arbitration allows disputes to be resolved faster, with more privacy, and usually at a lower cost. Build this into your agreements before you need it.

TL;DR

Jurisdiction is not fine print. It decides where disputes happen, which laws apply, and whether you’re fighting on your terms or someone else’s.

Always set your home jurisdiction, define governing law clearly, and consider arbitration as a first step. If you don’t decide, the other side will - and it won’t favor you.

Final Thoughts

Winning in IT isn’t only about writing clean code, shipping features on time, or keeping servers running smoothly. You also have to protect yourself when projects inevitably run into trouble.

Jurisdiction may look like a single line at the bottom of a contract, but it can change everything when conflict arises.

By setting the rules early, you ensure that if things do go south, they go south on your terms - not in a courtroom thousands of miles away.