International contracts

International Contracts

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International contracts: International attorneys
One of the most important aspect in international trade regards contracts, in this case the advice of an attorney is crucial for a successful conclusion of an international business. But sometimes attorneys lack experience and appropriate skills. In fact an attorney does usually a different job, intervening in a dispute for example. While the traditional attorney works after the reasons of the dispute has already arisen, a good contract attorney works before and against the onset of a possible dispute. So the attorney who offers advice in the drafting of a contract must be an international attorney with special technical characteristics and professional specializations. There are also some situations in international trade that - in ordinary contract - are often neglected.
International contracts: The problem of language
First of all there is the problem of language. It is not enough to make the contract in the respective languages of the contracting parties, but you need to determine what language will prevail in case of discrepancies between the texts.
International contracts: Information
Secondly it may be difficult for the Italian company to find information about the reliability of its foreign partner, then it is required a series of contractual and insurance arrangements to protect as much as possible from unpleasant surprises.
International contracts: Law
Thirdly it will be appropriate to declare which law will regulate the contract.
You can refer to the Italian Law or to the one of the contract partner, or even choose a third law, "neutral". Generally as in case of purchase and selling of movable personal estate, the UN Convention on the International Sales of Goods (Vienna Convention 1980) – is enforced. Anyway the contracting parties can also turn to general legal principles (lex mercatoria) and to practices of international trade.
However no solution, including those outlined above, may be better than a detailed and precise regulation of the contract in order to come to an agreement in the resolution of any possible source of doubt and controversy.
If the business relationship between the contracting parties is bound to a stable partnership, it is recommended the stipulation of the "General Conditions of Contract”.
This is a kind of contract that also contains all the rules that should regulate future relations between the same contracting parties, in order to make it easier and streamlined the exchange of goods and their implementation.
However in the drafting of contract terms the Italian company can play the role of seller or buyer. Of course in both cases interests are different. The seller aims to transfer ownership and the risk of the goods as soon as possible, as well as the corresponding payment. By contrast the buyer will have enough time to check the agreed quality of the goods, preferring move the clauses that postpone the passage of the risk and, of course, so that payment is forwarded only after a favorable check.
There are many clauses that regard the transport of goods and sometimes the role played by the consigners is also crucial for the correct filling of documents required for payment.
International contracts should also take care of penalties for delay and clauses regulating the consequences of an excessive burden that has occured (often a result of currency market or the increase in the risk country).
Finally, despite many contract cautions, one should always consider the assumption that between the contracting parties a dispute could arise.
In this case the appeal of the Parties is prone to include in the contract arbitration clauses (regulated and administered by international institutions) - also in the variant of fast arbitration - or for contracts of less value where it is necessary to minimize the costs of possible disputes, the inclusion regards other alternatives such as mediation to solve trade disputes.

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