General Jurisdiction
Persons (natural or legal ) domiciled in a Contracting State may be sued in the courts of that state. The domicile of a natural person is determined by the domestic law of the state where he has his domicile. And the seat of a company is determined by the law that governs the memorandum and articles of association. Depending on which court is seized it is the law of the country where the company has its head office or the law which gave it its legal personality.
Special jurisdiction
A defendant domiciled in one Contracting State may in some specific cases also be sued in the courts of another Contracting state:
(a) In respect of contractual obligation, the court of the place of performance of the obligation forming the basis of the legal proceedings has jurisdiction.
(b) Disputes arising out of the operations of a branch, agency or other establishment may be brought to the court of the place where the branch, agency or other establishment is located.
(c) An action on a warranty or guarantee, any other third party proceedings or a counter-claim may be brought before the court seized of the original proceedings.
Arbitration agreements are formed at one of two points in time: during the negotiation of a contract, or after a legal dispute arises. Because the contract negotiation process offers greater opportunity to develop an arbitration format without the acrimony that can develop after a controversy arises, inclusion of an arbitration agreement as a clause in a contract is preferable and can streamline the dispute resolution process. The arbitration agreement is generally incorporated into the contract governing the transaction.
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