This book presents an excellent guide to the complex world of international commercial agreements. Clear and concise, it is a key reference tool for business managers, lawyers and students. It addresses the essential issues that need to be dealt with, when negotiating, planning and writing international commercial agreements.
Contracts fulfil several functions. They spell out the rights and obligations of each of the parties to the contract, and manage any potential risks arising out of the contractual relationship, whilst at the same time supplying a contingency plan for each party in the event that the contractual relationship breaks down. This is true whether a contract is concluded between parties individuals as well as firms – at the national level or the international level.
At the national level, classic contracts include those between employer and employee, between husband and wife, between bank and customer and between doctor and patient. At the international level, different types of contract are concluded depending on the role of each party in the relationship as well as the subject matter of the contract itself. Such contracts include sales agreements, supply agreements, agency agreements, distribution agreements and licensing agreements, to name a few.
As a risk management device, a contract addresses all potential risks involved in a relationship (commercial or otherwise). A contract also has a pre-emptive role, as it supplies a strategy for the parties if events do not proceed as planned. The contract will include provisions that aim to help the parties salvage their relationship in such an eventuality and, if the worst comes to the worst, it will also include provisions that address the rights and obligations of the parties on termination.
When negotiating the terms of a contract, the parties should be aware of all the issues that need to be addressed in the contract. The provisions of the contract should address each of these issues in turn. Obviously no contract is perfect but the parties should aim for perfection.
This book will look at the issues that should be taken into account when a business located in one country is contracting with one located in another country. It will explore the framework within which international commercial agreements are concluded and within which commercial entities operate at the international level.
After a general review of the key concerns that need to be addressed when entering into an international contractual arrangement, specific commercial agreements commonly used by businesses contracting in the international context will be reviewed (sales contracts, distribution agreements, agency agreements and licensing agreements). In relation to each such agreement, the book will consider the separate concerns of each contracting