How can I legally secure my international business relationships?
November 22, 2023 | 60,00 EUR | answered by Albrecht Zellmann
Dear International Law Attorney,
My name is Carsten Tiefental and I am the managing director of a medium-sized company that operates internationally. Lately, we have been increasing our business relationships with foreign partners and suppliers, which is a positive development for our company, but also brings risks.
So far, we have mostly conducted our international business relationships verbally, without specific contracts or agreements. However, I am now concerned that this may not be sufficient in the long run to protect our interests and avoid potential disputes. That's why I am looking for ways to legally secure my international business relationships.
I would like to know from you what legal framework exists to draft contracts with foreign partners and suppliers, and what clauses should absolutely be included in such contracts. Furthermore, I am interested in what options there are to resolve disputes in international business transactions and how I can protect myself in case of contract breaches or other legal issues.
I hope you can assist me in this matter and provide me with possible solutions to legally secure my international business relationships. Thank you in advance for your support.
Sincerely,
Carsten Tiefental
Dear Mr. Tiefental,
Thank you for your inquiry regarding the legal protection of your international business relationships. It is very important that you consider the drafting of contracts to protect your interests and avoid potential disputes. Especially in international business transactions, different legal systems and cultural differences can lead to complications, therefore a clear contractual arrangement is essential.
First of all, it is advisable that you enter into written contracts with your foreign partners and suppliers. In such contracts, all important agreements and conditions should be clearly stated, such as delivery times, payment terms, liability limitations, warranties, and indemnification clauses. It is important that all parties understand and accept the contract terms to avoid misunderstandings and disputes.
Furthermore, you can include certain clauses in your contracts that provide you with additional security. For example, you could include a jurisdiction clause that specifies which court has jurisdiction in case of disputes. An arbitration clause could also be considered to settle disputes out of court. Additionally, clauses on the applicability of international law or the regulation of penalties and indemnification claims can be included.
In case of contract breaches or other legal issues, you can also protect yourself through certain measures. For example, you could take out insurance to protect against certain risks such as delivery failures or payment defaults. Regularly reviewing and updating your contracts can also help identify and resolve legal issues in a timely manner.
Regarding the resolution of disputes in international business transactions, you have various options available. In addition to the arbitration clause mentioned earlier, you can also resort to international arbitration tribunals or seek specialized lawyers in International Law to achieve an out-of-court settlement.
I hope that this information is helpful to you and supports you in the legal protection of your international business relationships. If you have any further questions or require individual advice, I am at your disposal.
Sincerely,
Albrecht Zellmann
