What, however, of the situation where there is a dispute between corporation A in
State X, and corporation B in State Y? Suppose that A and B are parties to a contract
for the sale of goods, with B the buyer, and B alleges that the goods are defective. If
they cannot resolve their dispute by negotiation, B may have to contemplate litigation
in a court, alleging that A breached the contract. B may sue A in B’s own country,
because their agreement has an exclusive jurisdiction clause providing for any dispute
arising from the contract to be litigated in B’s country. Or (if there is no contrary
clause) B may sue in B’s own country for practical reasons including the presence in
that forum of witnesses, familiarity with the language and the law, and so on. If B
secures a judgment in its favour, and A does not fulfil the terms of the judgment (such
as by paying any damages awarded), and A does not have any assets in the
jurisdiction against which the judgment can be enforced, then B will need to enforce
judgment against A in a State – typically B’s own country – where B has assets. The
question then becomes one of whether B can in law and in practice enforce that
judgment in B’s country. Whether this is feasible will vary from State to State.