Question

Zapata, a Texas Corporation, entered into a contract with Unterweser, a German corporation, to tow Zapata's drilling rig from Louisiana to Italy. A storm arose and Zapata told Unterweser to tow the rig into Tampa, Florida. Zapata immediately filed a lawsuit in Florida against Unterweser for damages to the rig. The original contract called for "Any dispute must be heard before the London Court of Justice." The U.S. Supreme Court held that:

Answer 1

The parties must adhere to the forum-selection clause and have the case heard in London.

Step-by-step explanation:

A contract is a kind of agreement between two or more persons, companies or organizations whose purpose is to acquire, safeguard, transfer, modify or terminate a legal relationship, or an agreement between parties. The contract must list all the rights and duties of this agreement and how any conflict between the contracting parties will be resolved.

In the case shown in the above question, a contract was signed between Zapata and Unterweser. That agreement stated that "Any dispute must be heard at the London Court of Justice", however Zapata Company has filed a lawsuit in Florida against Unterweser.

In such a case, the Florida court must follow what was established in the contract between the two companies and must declare that the parties must adhere to the forum selection clause and hear the case in London.