Navigating the residence for sole traders and other natural persons under the 2005 Hague Choice of Court Convention

The 2005 Hague Convention on Choice of Court Agreements partially replaces the Brussels Ia Regulation in UK-EU judicial cooperation post-Brexit, underscoring its growing international significance. Although primarily designed for business to business (B2B) contracts, the Convention also applies to non-legal entities (natural persons) such as sole traders. The determination of the parties’ residence is central to legal certainty, as residence functions as a key connecting factor for the Convention’s scope of application and its coordination with other international instruments. While the Convention provides an autonomous definition of residence for legal entities, it remains silent as regards natural persons. Given the Convention’s nature as an international treaty, “residence” must be interpreted autonomously, rather than by reference to national law. Focusing on the structure and operation of the Convention, its interpretation must observe a de minimis threshold excluding mere temporary presence and, particularly in light of Article 26, recognise parties’ “secondary” residences to coordinate the Convention with other instruments. Autonomous interpretation ensures uniform application across Contracting States and enhances the Convention’s effectiveness, both at the level of jurisdiction and of recognition and enforcement.