Key terms in project finance documentation and drafting — applicable law and jurisdiction clauses

An applicable law clause and a jurisdiction clause are different. A contract can have different law and jurisdiction, that is, parties to a contract can nominate different law and jurisdiction.

With regards to an applicable law clause, the commercial effect of a contract could vary depending on the law and jurisdiction the contract is interpreted in. For this reason, it is essential that the project parties to a contract agree on these matters.

With regards to a jurisdiction clause, it often accompanies any applicable law provisions in contracts and is designed to specify the jurisdiction in which the parties agree disputes will be adjudicated.

This guidance note provides legal practitioners with commentary to help draft (and review) applicable law and jurisdiction clauses in project documents.

See Key terms in project finance documentation and drafting — applicable law and jurisdiction clauses.