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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Dear Sirs, My company is about to start trading on the world

Resolved Question:

Dear Sirs,
My company is about to start trading on the world wide web and we have been seeking suitable insurance. We anticipate that some, maybe a majority, of our clients will be in North America. At present we are relying on our terms of service, which include the following clause -
“This agreement is to be construed under English law and we agree that any dispute between us will be settled under the exclusive jurisdiction of the English courts.”
- to be sufficient to protect us from any action that may be brought in any court outside of the United Kingdom. The client must tick a box agreeing to our terms before being allowed to explore the website or receive any download to their device. That is to say, the agreement is made by an affirmative action of the client.
Whilst we do not anticipate any problems as the app is very non controversial and low key, we also want to ensure that that we have the effective cover needed to be able to serve a North American customer base.
Can you please confirm the principal that only actions bought in an English court could proceed against us, for which our insurers provide cover. They are also providing cover for trading with US and Canadian clients on the web. We shall not be entering into any contract in the USA or Canada but only over our website as above. Is it the case that any petition presented to, say, a US court could not be heard there as the court would not be competent?
We propose to start trading on the 1st September 2016.
Sincerely
Philip Standing
Director and Secretary
VoxCheckList.com limited , Hants, UK.
01420 563806 or 07899 991765
Submitted: 10 months ago.
Category: Law
Expert:  Ash replied 10 months ago.

Hello Philip my name is ***** ***** I will help you with this.

What type of goods/services are you selling please?

Customer: replied 10 months ago.
Our website enables people to create, save, edit and run checklists. The users create their own content (the checklists) and can download them to their mobile device. When running a checklist, you can have it work entirely by voice interaction, entirely by touch, or a combination of the two. Users can share checklists. There are two services, a free service with restricted facilities which we think people will use to get a feel for what's on offer, and a paid service with full facilities and a $12 per year charge. Do you need more?
Expert:  Ash replied 10 months ago.

Your terms should be sufficient. You are making to clear that they are bound by UK law and any dispute should be governed here.

Therefore they are bound by the terms of the UK. In any event whilst it is possible, its unlikely that any Judgment in the USA would be binding here, given your terms.

But I would try and get insurance that covers you elsewhere if you can, just in case.

However you terms are sufficient - its binding on the person making the contract that UK law applies

Can I clarify anything for you about this today please?

Ash and 4 other Law Specialists are ready to help you
Customer: replied 10 months ago.
Thank you Ash, I just wanted absolute confirmation that I had not forgotten all my contract law training. Also, the insurance company seems happy with the offered policy matching our Terms of Service. The cost of cover for US law contracts (which we do not need) is very high. The reason for the caution is that I know of experiences with US customers and principals who seem quite litigious.
Kind regards
Philip.

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