How to decide which court to judge a dispute? I assume both parties would want their own court that is in favor of them.

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Agreed upon in the contract.

I see. There's indeed a valuable point. It limits the applicability to mutual contracts, however.

I was thinking of cases without contract. Accidents, violation of property rights, children's rights, etc. There is still a need for a central law. And law enforcement. Or do you have ideas for that as well?