Foreign Trade and Commercial Law

 

Trade relations across countries require specific principles, rules and regulations to govern these relations. Commercial relations have two aspects, private and public. For example, the relationship between traders and companies from different countries, which is called trade law, reflects the private aspect of trade relations. On the other hand, the laws on exports and imports, free trade zones and investment, which require the supervision or intervention of governments in international trade, are considered as the private aspect of trade relations.

International Commercial Law, which forms an important part of the ESK International Law Firm’s activities, includes issues related to business-to-business relations in areas such as the sale of goods and services, getting operation licenses, leasing, agency, and payment methods. ESK also assists its clients with drafting contracts for investment joint ventures, transportation of goods, insurance, and settlement of commercial disputes.

What is International Trade?

 

International trade and commercial activities at the global level can be divided into two general categories of imports and exports.

In imports, goods and services required by the country are purchased from foreign trading partners. The reason for this is insufficient domestic production or competitive production costs in the country. For example, many industrialized and developed countries, despite their scientific and industrial superiority, depend on oil imports from weak countries that have vast oil resources.

Exporting goods, which is another aspect of international trade, means selling the country’s goods to others. In this regard, countries that have natural resources, minerals and petrochemicals, have a higher export power and advantage because other countries need these raw materials for industrial and manufacturing activities.

Why are International Agreements Important?

 

The main condition for a contract to become international is having a foreign element. This foreign element can be the nationality of the parties, the place of conclusion, or the place of performance of the contractual obligations. Almost all necessary standards for concluding domestic contracts also apply to foreign contracts, such as the need for complete and accurate description of the parties, identification of the parties, description of the subject of the contract, and the like.

But there are some special points in the preparation and regulation of international contracts, such as the need for consistency with the national laws of the parties and international law, determining the implementation guarantee, how to compensate for breach of contract, the provision of contractual guarantees and dispute resolution.  An international contract also required:

♦ A reasonable and appropriate timeline.

♦ The place of fulfillment of contractual obligations must be clear and explicit.

♦ International payment methods to be determined.

♦ The conditions related to force majeure and their effects on the contract should be regulated.

♦ The law governing the contract and the competent authority in resolving disputes should be specified.

 

What are the Different Types of International Trade Contracts?

 

International contracts have a wide range, but some of the most important types of contracts can be identified as follows:

♦ Representative Agreement (Franchise)

♦ Agency contract, both exclusive and non-exclusive

♦ Buyback contract

♦ Sales Agreement

♦ Project financing contract

♦ Technology transfer contract

♦ Software license or license agreement

 

Of course, there are many other examples of international contracts. These contracts are important because they deal with legal issues in more than one country. Therefore, they require familiarity with the legal system of the countries, such as the tax system, insurance, transportation, export and import laws and regulations. Undoubtedly, you will need the presence of experts in the process of signing international trade agreements.

On the other hand, disagreements in any Commercial and economic activity are undeniable. Litigation and disputes in international trade are twice as complex as in domestic contracts because if the rules governing the settlement of disputes are not specified in the contract, the reviewing authorities must determine them with the help of legal principles and rules. Also, the enforcement of the issued verdicts, especially when there is no arbitral award, will face many difficulties.

International Commercial Arbitration

 

With the increase in the volume of international trade and the consequent increase in the number of disputes, reputable international tribunals have been established for arbitration. Basically, the arbitration process has a significant place in dealing with commercial disputes. These arbitration centers usually operate together with chambers of commerce in different cities and countries. Also, some professions, such as lawyers and engineers, depending on their field of expertise, can specialize in international commercial arbitration matters.

To conclude the best contracts for foreign trade and investment, as well as to benefit from legal services in the field of international commercial litigation, you may contact the consultants of ESK International Law Firm. Our lawyers with a significant record and expertise in these fields will accompany you during the whole process.