An international contract is a contract with one or more elements in contact with a foreign legal system.
Therefore, in the event of a dispute, these extraneous elements inspire questions regarding not only the law of the contract but also about the competent court.
International contracts represent a danger to contractors who are not careful.
Indeed, in the absence of contractual provisions specifying the intention of the parties, the judge will determine the law applicable to contract interpretation. The law specified by the judge to interpret the contract is then left to the will of the parties.
Moreover, the jurisdiction applicable to the contract is decided by each respective judge; a fact which often creates and fosters a heightened sense of uncertainty within each matter.
To avoid any legal uncertainty, all parties should take great care in preparing their international contracts. This careful preparation will enable them to ensure that the dispute will be resolved in strict compliance with the will and expectations of those involved.
The inclusion of explicit and precise terms is therefore essential so as to avoid the unwanted application of a statute leading to unpredictable legal consequences for both parties.
The required preparation and implementation of any reaction to a contractual dispute therefore mandates the intervention of an experienced lawyer in order to eliminate unpredictable variables throughout any and all business transactions.
