Keys to internationalisation

It was not too long ago that business was closed with a simple handshake. Giving ones word was a firm commitment between the two parties. However, as the scope of business began to grow, we are no longer exchanging goods between neighbours and we are now operating on a global market. Things have changed and the number of risks have increased. A verbal agreement is no longer sufficient. You need to know and use all legal mechanisms available. It is better to lose some time preparing a detailed contract than to spend several years in a legal process.

In national commercial relationships and also in the EU this step is frequently overlooked. We make deals with clients and suppliers alike without entering into any contractual relationship. However, when working with countries far away where there are high political and economic risks involved we should not do the same. Resolving a dispute with a company located in a distant country is much more complicated. All risks that can be pre-empted by signing a contract can save many problems later.

In the section risk management you can see all classes of risks which you may face in international trade and the instruments to cover them. Despite this, there is always something that may be overlooked.

Some of the most frequent international negotiation errors committed are:

• A contract is considered to be un-commercial and you opt not to have one.
• Too much attention is paid to the business aspects of the contract ignoring the section on “solving disputes” which is where the applicable legislation is determined and the forum or jurisdiction court nominated.
• Verbal agreements are made without confirming them in writing.

The international legal environment is characterised by the plurality of laws, legal cultures, uses, customs and forums and jurisdictions. With all this complexity, you should not become discouraged and you should make an effort to get to know the applicable legislation during the development of your activity abroad and the appropriate forums and courts in case of a dispute.

byGalicia can help you in this task. Click on each link to know more:

• Contract models used with commercial intermediaries.
• Formal aspects that need to be included in an international contract.
• Intellectual and industrial property and the need to register.

• Accessibility of foreign markets
• International contracting
• Model international contracts
• Formal aspects of the international contract
• Intellectual and industrial property
• Complaint procedures