For Web Agencies Charging $50,000 or More: A Quick Tip

Here’s a quick tip for web agencies working with international clients:

Pay special attention to the choice of law and jurisdiction clauses in your contracts.

This becomes especially important if your project amount is high, say $50,000 or more.

The Importance of Choice of Law and Jurisdiction Clauses:

Let's take a hypothetical example here.

Suppose your agency is based in the US and you are working with a client from Germany.

Then you need to consider where and how any potential disputes will be resolved.

Now, I am not talking about negotiations and such.

I am talking about a stage where the court case is the only way you can settle a dispute.

This is where the choice of law and jurisdiction is important because:

-> These clauses specify that any disputes will be handled in your home country.

-> Dealing with a foreign legal system can be a headache, terrifying, and costly.

-> Avoid the expenses and hassle of international travel or hiring foreign lawyers.

Ultimately, you are looking out for your time and money here.

Common Issues Without These Clauses:

Many web agencies and lawyers overlook this clause.

Because this clause is treated as a "Standard clause" in every agreement.

So without a clear jurisdiction, disputes might end up being handled in the client's country.

This always leads to confusion and lengthy legal battles.

And navigating a foreign legal system will require you to hire local lawyers, and potentially travel abroad.

These costs can quickly add up and eat away at everything you have earned so far.

Different countries also have different laws.

And you may put yourself at a disadvantage trying to understand and comply with foreign legal requirements.

My Approach To This Issue

Now in order to deal with this issue, here are a couple of steps I suggest:

1) Specify Choice of Law:

Clearly state which country’s laws will govern the contract.

Example:

“This Agreement shall be governed by and construed in accordance with the laws of the State of [Your State], USA.”

2) Designate Jurisdiction:

Identify the location where any disputes will be resolved.

Example:

“Any disputes arising out of or in connection with this Agreement shall be resolved exclusively in the courts of [Your City], [Your State], USA.”

3) Include in All Contracts:

Ensure that these clauses are standard in all your contracts with international clients, especially for high-value projects.

Final Notes

The choice of law and jurisdiction clauses is important when you are working with international clients.

Because you can avoid unnecessary complications if this clause is written well.

So take a moment to review your current contract.

Do they have these clauses clearly written?

If not, then it's time to update them.

Now I can help you out with updating them.

If you need my assistance, just reply to this email with "HELP" and I will send you steps on how we can work together.

Until next time.

-- Akhil Mishra