How a contract is interpreted by a court is in large part based on the terms set out in the jurisdiction and governing law sections of the contract. In some situations, parties may be tempted to omit these sections of a contract. Before omitting these sections, a party should be aware of the risks. By omitting jurisdiction and governing law clauses a party could be exposing itself to the possibility of: (i) bearing costs related to engagement of legal counsel in a foreign jurisdiction; (ii) bearing costs related to travel to a foreign jurisdiction; and (iii) being subject to a legal regime with remedies and penalties that the party did not consider when negotiating the relevant contract. Michael Gleeson was recently interviewed on the topic. See:

http://www.advocatedaily.com/the-risk-of-remaining-silent-on-jurisdiction-in-contracts.html