The rise of globalisation has facilitated international business dealings. When doing business in more than one jurisdiction, companies enter into contractual obligations with third parties overseas.
When it comes to international contracts, it is important that all parties to the contract understand the different elements that must be considered for the agreement to be valid. This is essential in international contracts, since different laws from different jurisdictions may apply and thus affect the validity of the agreement, or a given clause.
Internacional contracts: in case of dispute
For instance, parties may decide to establish a governing law to determine which country’s law applies to the international contract. In addition, it may also be desirable to include a jurisdiction clause to specify which national courts will hear on a dispute. Parties should also consider whether to choose arbitration as a dispute resolution mechanism. In this case, several factors ought to be considered, including which arbitral rules will be applied, the seat of arbitration, the language(s) of arbitration, whether to specify the number of arbitrators and whether pre-arbitration mediation is suitable, amongst others.
Language barriers and cultural differences when dealing with contracts internationally
Moreover, language barriers and cultural differences must also be taken into account when negotiating a contract with an overseas party. Technical terms must be translated correctly in such a way that all parties to the agreement understand and abide by their respective legal obligations. When it comes to cultural differences, the negotiation of sensitive clauses certainly requires an understanding of cultural customs to ensure effective communication that leads to a successful and beneficial outcome to all parties involved. At the very least, ineffective communication fuelled by cultural and language differences may cause a prospective deal to fall through. At worst, leaving scope for misinterpretation once a contract has been executed can lead to expensive litigation, and eventually to a potential termination.
Our extensive experience dealing with international contracts
For these reasons, it is paramount to seek expert legal advice when entering into an international contract.
Our lawyers have extensive experience in international commercial law. Our in-depth knowledge of the Spanish market, alongside with being qualified and having practised in multiple jurisdictions allows us to advise clients on the technical and strategic issues that must be considered when entering a contract with an overseas party. In addition to our offices in Spain and Dubai, we have established partnerships with local counsel and law firms all over the globe. This enables us to assist clients in relation to business dealings in any jurisdiction.
Helping our clients on execution, mediation or dispute resolutions
Our team is prepared to advise clients at every stage before, during, and after entering into an international contract. These include due diligence, strategic considerations, negotiations, drafting and execution of the contract, mediation, dispute resolution and termination.
If you need help regarding an international contract or you want to ask us any questions on the subject, please reach out to us through our contact page.