Jurisdiction gaps sink global deals in the fintech space

I recently launched Unbilled Hours, my second newsletter, and let me tell you, it’s been a game-changer.

It’s a space where I dive into the behind-the-scenes of growing a legal firm - something I’ve wanted to do for ages.

Getting it out into the world felt like clearing out the mental clutter, making room for new ideas and focus.

You can join it here by the way:

Maybe you’ve had that moment too, launching a new project or feature for your fintech business and feeling that spark of progress.

But keeping it all going is tough. Between running a firm, showing up consistently, and now adding a newsletter to the mix, time is my biggest challenge.

I bet you feel that crunch too, juggling your platform, partnerships, and growth.

What keeps me grounded is knowing most people online aren’t “winning” - they’re figuring it out, just like we are. That’s the journey, and it’s okay to embrace the hustle.

That hustle brings me to a lesson I want to share with you today - something I see fintech operators overlook far too often: jurisdiction gaps in contracts.

Everyone loves the idea of a handshake deal, especially when you’re sealing a partnership that feels like a slam dunk.

But when things go south - and in fintech, they can - those handshakes won’t help if your contract doesn’t say where disputes get settled.

Let me share why this is a big deal and how you can protect yourself from a legal mess that could cost you time, money, and trust.

The Jurisdiction Trap That Can Derail Your Fintech Deal

Let’s say you’re processing cross-border payments, handling investor onboarding, or powering a lending app.

You strike a deal with a partner abroad, and it’s all smiles as the money starts flowing.

Everything’s clicking, and you’re thinking, “This is what growth looks like.” But then, something goes wrong.

Maybe a payment fails, a client disputes a transaction, or there’s a disagreement over a contract term.

You both pull out the agreement, ready to sort it out, only to find a glaring hole: there’s no jurisdiction clause.

No mention of which country’s laws apply or where a dispute should be handled.

Suddenly, the problem is figuring out where to even start resolving it. Should you fight it out in India, where you’re based? The UK, where your partner’s headquartered? Singapore, because it’s a neutral hub?

Each side digs in, hiring lawyers not to solve the original issue but to argue over the arena for the fight.

What could’ve been a quick email exchange spirals into six months of legal limbo, with bills piling up and your focus pulled away from growing your business.

This is a common trap in fintech, where deals often cross borders, regulations are complex, and trust can outpace the paperwork.

In India, with RBI, SEBI, and the DPDP Act layering on rules, a missing jurisdiction clause can turn a small hiccup into a full-blown crisis.

The problem? Most founders assume a handshake or a vague contract will hold up, but when money’s on the line, clarity is what keeps you safe.

The good news is you can avoid this mess entirely by building the right terms into your contracts from the start.

Four Steps to Add Jurisdiction in Your Fintech Contracts

To make sure your fintech deals don’t end up in a legal void, you need to anchor every contract in clarity about where and how disputes get handled.

These 4 steps are made for fintech operators like you, and I’ll explain why each one is critical to keeping your business protected and your partnerships smooth.

1. Pick a Jurisdiction and Make It Non-Negotiable

Add a clause like this to your contract:  

“This Agreement is governed by the laws of India, and any disputes will be resolved in the courts of [City].”

This is your first line of defense. By naming a specific jurisdiction - like India, where you’re likely operating - you’re setting a clear rule for where legal battles will take place.

This matters because fintech deals often involve partners in different countries, each with its own legal systems.

Without this clause, you’re leaving the door open for a costly argument over where to settle a dispute, which can drag on for months and rack up legal fees.

A clear jurisdiction clause keeps things predictable, letting you focus on resolving the actual issue instead of fighting over the battlefield.

It’s especially critical in India, where local regulations like RBI and SEBI can influence how disputes are interpreted.

2. Specify the Governing Law

Go a step further with:  

“The governing law of this Agreement is the law of India, excluding its conflict of law provisions.”

Jurisdiction decides where a dispute is handled; governing law decides how it’s interpreted.

This distinction is key in fintech, where cross-border deals might pull in laws from multiple countries.

By locking in India’s laws (or another jurisdiction you’re comfortable with), you’re ensuring the contract is judged by rules you understand, like those tied to SEBI or the DPDP Act.

Without this, a foreign court might apply its own laws, which could put you at a disadvantage or complicate compliance.

This clause keeps your legal exposure manageable and aligns with the regulatory landscape you’re already navigating, saving you from surprises down the road.

3. Build in a Fallback Process for Disputes

Include something like:  

“Any dispute shall be settled by arbitration in [City], under the [e.g., Indian Arbitration and Conciliation Act, 1996] rules.”

This is your safety net, especially for international deals.

Arbitration is faster and cheaper than court battles, and it lets you pick a neutral location - like Mumbai or Singapore - that both sides can agree on.

This matters because fintech disputes can get messy fast, especially when money’s crossing borders and emotions are running high.

By setting up arbitration, you’re creating a structured way to resolve issues without getting stuck in a foreign legal system or endless litigation.

It’s a proactive move that shows partners you’re serious about fairness while keeping costs and delays under control.

4. Add a Cooling-Off Period to Defuse Tensions

Toss in a bonus clause like:  

“The parties agree to a 30-day negotiation window before any legal proceedings may begin.”

This is a gem for keeping disputes manageable. When a payment fails or a clause is contested, emotions can flare, and both sides might rush to lawyers.

This clause forces everyone to pause, talk it out, and try to settle things over a call or email before escalating to arbitration or court.

It’s critical because many fintech disputes are misunderstandings that don’t need to become six-figure legal fights.

This window saves you time, money, and stress, and it shows partners you’re committed to solving problems collaboratively, which can preserve valuable relationships.

Your Quick Checklist to Avoid Jurisdiction Issues

Here’s a simple rundown to make sure your contracts are great:  

• Name the jurisdiction: Pick a clear location, like India, for disputes.  

• Set the governing law: Specify which laws apply to keep interpretations predictable.  

• Include arbitration: Add a fallback process to resolve issues efficiently.  

• Add a negotiation window: Give disputes a 30-day buffer to cool off.

With these in your contract, you will make sure you will have a smooth way out during disputes.

To Finalize Everything

Here’s the bottom line: in fintech, trust is what gets deals signed, but clarity is what keeps them from falling apart.

Think about it like the consistency you’ve been pouring into your fintech business - showing up day after day, launching new projects like my Unbilled Hours newsletter, or growing your platform.

That’s what’s gotten you this far, whether it’s landing new partnerships or navigating India’s regulatory maze.

Now, apply that same discipline to your contracts. Don’t let a handshake vibe leave you exposed.

Add the clauses, set the rules, and make sure your legal team’s ready to roll when - not if - trouble strikes. That’s how you build a business that’s not just successful but unstoppable.

So, next time you’re drafting a contract, take a moment to lock down the jurisdiction details.

It’s a small step that could save you from a world of stress - and set you up for the kind of growth that comes from getting it right every time.