BUSINESS CONTRACTS AND FOREIGN DISPUTES
International Law is a body of legal rules, conventions, treaties, domestic legislation and commercial customs that governs international commercial or business transactions.
The methods of entering the foreign market, include:
- Export directly.
- Use of foreign agent to sell and distribute.
- Use of foreign distributor to on-sell to local customers.
- Manufacture products in the foreign country by either setting up business or by acquiring a foreign subsidiary.
- Licence to a local producer.
- Enter into a joint venture with a foreign entity.
- Entering into contracts for purchase of foreign goods and services.
A transaction will qualify to be international if elements of more than one country are involved. Unsurprisingly a dispute with an individual or company who is based in another country can be full of seemingly insurmountable barriers. Foreign language and laws as well as time and currency differences make communicating with the relevant parties very daunting.
With trade in the UK limited, many companies and individuals want to do business internationally both in Europe and the rest of the world. Fear of disputes shouldn’t prevent you from doing business internationally and there are now well established protocols and laws to protect companies and individuals who transact outside of the jurisdiction.
In determining the jurisdiction and laws applicable much will depend upon the contractual terms contained in the Agreement around which the dispute has arisen. It is possible to avoid international court proceedings by setting out in the Agreement the laws applicable to any dispute.
There are various methods to resolve matters which are;
- International Arbitration is a leading method for resolving disputes arising from international commercial agreements and other international relationships. The practice of international arbitration has developed so as to allow parties from different legal and cultural backgrounds to resolve their disputes, generally without the formalities of their respective legal systems.
As there are no appeals in international arbitration, disputes should, on average, be faster than domestic court proceedings with multiple levels of appeals. Since disputes do not take as long to resolve they should also, in theory, be less expensive than domestic litigation.
- International Litigation is the method of resolving matters in courts outside the jurisdiction of the UK. Of paramount importance are the following;
- the jurisdiction for bringing your claim;
- the merits and disadvantages of each possible jurisdiction;
- the applicable law which governs your claim; and
- any issues regarding potentially relevant data and witnesses located in different jurisdictions.
Anyone faced with a dispute involving foreign jurisdiction issues should ensure they seek the appropriate expert legal advice.
Please Note: This document is for general information only. It is not legal advice and should not be acted or relied on as being so. It does not create a solicitor-client relationship between Temple Legal Solutions Ltd and any other person. Legal advice should be taken before applying any information in this document to any facts and circumstance.
If you contact Temple Legal Solutions (link to http://www.templelegalsolutions.co.uk/contact-us) or call 01483 514814 to make an initial enquiry, you will then referred to an appropriate, experienced law firm.