It is counterintuitive to business people. When they put their arrangement into contract form, they are focused on a successful outcome. For many business people, the contract never gets looked at again unless times are tough. When things are not working out, that’s when people reach for their contract to ascertain their rights. If litigation is a possibility, one of the first things to look at is whether the contract contains an arbitration clause, or a choice of venue provision. Such a contract term will most likely control the forum where the litigation happens. For this reason, business people should put careful consideration into whether arbitration is proper, or whether a court in a particular state or county should be agreed upon in advance. It is not difficult to add this language, even to a short agreement prepared without counsel. Courts will generally enforce these provisions, so do not hesitate to negotiate this term when you are putting your business agreement in place.
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