Forum selection

The contract's rule for where a lawsuit or dispute must be handled.

Why it matters

A distant forum can increase dispute costs. Forum selection should be reviewed with governing law, attorney-fee, and jury-waiver provisions.

Related terms

Related article: Factoring contract red flags

Related reading

Sources

  • International Factoring Association - International Factoring Association. Accessed 2026-05-19. Industry association source for factoring terminology and industry context.
  • Secured Finance Network - Secured Finance Network. Accessed 2026-05-19. Industry education source for secured finance and asset-based lending context.
Financial disclaimer. This page is educational only and is not financial, legal, tax, accounting, or credit advice. Factoring terms vary by provider and contract. Read the full disclaimer.