exclusive venue
Definition
Exclusive venue is a contract clause that forces both parties to handle any legal disputes in one specific court or location, and only that location. If you sign a contract with an exclusive venue clause, you give up your right to sue the other party in a court near you and must instead travel to wherever the contract specifies.
Example
You sign a supplier contract with a company based in Delaware, and the exclusive venue clause says all disputes must be handled in Delaware courts, so even if you run your business in California, you would have to file or defend any lawsuit there.
Watch Out
These clauses can be very costly for small businesses because fighting a legal battle far from home means extra travel expenses and the need to hire an out-of-state attorney.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.