Back

In Which Jurisdiction is a Contract Formed?

In the recent case of Conductive Inkjet Technology Ltd v Uni-Pixel Displays Inc [2013] EWHC 2968 (Ch) the High Court of England and Wales was asked to consider whether a contract, which intentionally omitted a jurisdiction clause, was formed in England or the United States of America.

Generally, under the laws of England and Wales a contract is formed at the time and in the place which acceptance of an offer is communicated to the offeror.

The High Court reasoned that as the parties had failed to agree upon a jurisdiction clause it would be arbitrary to decide in which territory the contract had been formed by using the general rule above. It therefore found that a contract could be formed in two separate jurisdictions at once.