Within court proceedings on matters concerning relations between entrepreneurs in connection with their business activities, the law allows entrepreneurs to agree in writing on which court will have jurisdiction in the matter, i.e. to enter into a prorogation agreement. An exception is only a precise list of proceedings for which the law lays down exclusive local jurisdiction, which cannot be changed even by the parties’ agreement.
The prorogation agreement is usually motivated by cost savings. Particularly if an entrepreneur in its business activities concludes contracts or provides services to several different entities, it is more economical to be involved in a lawsuit at its “home” court rather than throughout the country.
However, such an agreement must be in writing and may not be entered into in the B2C relationship. The parties’ arrangement is usually the content of a specific agreement from which the future dispute will arise. Nevertheless, the condition of the written nature of the agreement, if included in the General Terms and Conditions (GT&C), was also commented on by the Supreme Court of the Czech Republic in its decision. The Court came to the conclusion that the prorogation agreement may also be determined by a reference to the GT&C, if annexed in written form to the draft agreement or known to the parties. The GT&C are also known to the parties if the written copy of the agreement contains a reference to the GT&C regardless of the fact that they are available on a website. A necessary condition in such a case is that the other party confirms by its signature that it has become acquainted and agrees with the GT&C available on the website!
In conclusion, GT&C can also be published online, thereby being included in the contractual relationship between the parties, which is especially useful for entities trading online. However, this is also essential because it makes it possible for entrepreneurs to use other arrangements, i.e. not only an agreement on the local jurisdiction of the court.
