Tacit agreement of a choice of forum clause between merchants

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Tacit agreement of a choice of forum clause between merchants

The insertion of a choice of forum clause on the back of repair orders signed designating a court is valid when it can be justified by usual business relationships between merchants, as recently pointed out by the Civil Chamber of the Court of Cassation.

In this case, a French transportation company whose fleet was maintained by a mechanic from Andorra, wanted to render the latter liable for defects.

Logically having recourse to the court where its head office is located, the transportation company’s decision was contested by the mechanic who invoked the lack of competence of the French court in favor of the Andorran judges.

Indeed, the mechanic from Andorra invoked, to make his case, the existence of a choice of forum clause written on the back of the vehicles repair orders.

In this regard, the French law provides that a choice of forum clause is valid between merchants if it was « very clearly specified ».

Therefore, the Court of Cassation had to answer the following question: can a choice of forum clause mentioned on the back of repair orders be considered as very clearly specified? And therefore be applicable?

France’s highest jurisdiction replied in the affirmative, basing its ruling on the fact that both companies had usual business relationships, characterized by the issuance of ten repair orders, each of them mentioning this clause, over a 7-month consecutive period.

This ruling echoed the jurisprudence that acknowledged the validity of the choice of forum clause written in the general terms and conditions to which the signed contract refers. It is therefore more important than ever to maintain extra alertness in the commercial trade…

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