Las Vegas has a number of organizations that do business abroad. At the Aldrich Law Firm, Ltd., we have seen what can happen when international contracts are not structured properly. If you plan on working with foreign entities, there are a few items you should consider before entering into any type of agreement.
One of the most important – and possibly overlooked – factors is including a clause that addresses what happens in the event of a dispute. According to the International Centre for Dispute Resolution, these issues should be discussed early in the negotiations process. This clause should address factors including the following:
- Where arbitration will take place
- How costs will be assessed
- How the arbitral tribunal will be appointed
You will also need to determine which country’s laws will govern the contract, business and any disputes that could arise. To that end, keep in mind that the value of currency fluctuates often, and what may seem like a good deal one day may not be so attractive down the road. Study exchange rates and know what you may be getting into in terms of finances.
Consider that language could be a barrier when negotiating the terms of a contract. You should be comfortable with the translator used for both parties to ensure that everyone is on the same page with what is getting signed.
It is also imperative that you do your due diligence in researching any company you may do business with or international employee you may hire. Background checks and third-party investigations can be helpful in determining if the party can be trusted.
For more information on this topic, please visit our page regarding business contracts.