A forum selection clause is included in a contract to decide where legal disputes will be handled if something goes wrong. 

There are two types of forum selection clauses: exclusive forum selection clause and non-exclusive forum selection clause. Exclusion forum selection clause specifies a court that must be used to litigate a dispute. Non-exclusive forum selection clause indicates that the chosen court is an acceptable venue, but it is not binding, meaning the parties can still choose another court if they want to.

This makes litigation more predictable, since it allows everyone to know where the case will be handled and adds convenience since the business is able to pick a location that is favorable to them.

A business might also be able to avoid being sued in a state with strict laws or costly litigation process and choose a more business-friendly court.

In these types of cases the plaintiff is usually the party alleging a breach of contract and the defendant is the party accused.

Courts generally uphold these clauses unless there’s evidence of fraud or if enforcing the clause would be unjust. The enforceability of these clauses has been shaped by The Breman v. Zapata Off-shore Co. and Atlantic Marine Construction CO.v. U.S. District Court. These cases both enforce that valid forum selection clauses are presumptively valid and should be honored unless shown to be unreasonable (such as fraud, unfairness, and lack of notice). 

Forum selection clauses are contractual agreements that specify the court and location for the parties to settle their legal dispute. They affect litigation by determining where the case will be filed in addition to jurisdiction.