What content should have an international contract?

attorney contract

 

 

 

 

 

 

 

 

International commercial traffic has been developed in recent years and the contracts specific for each type of business have multiplied. But in either case, There are a number of basic clauses that should be present in their contracts.

Based on these relevant clauses specific clauses will be added for each type of contract.

The key provisions are:

Identifying the parts: You must specify in the contract what the contracting parties and in case of legal persons concerned, the name of the person signing on its behalf and the power under which the accounts.

Contract duration: If the contract provides a relationship that continues over time, you must specify the start date and the end.

Causes for termination of contract: You must specify the terms governing the termination of the contract, either by expiration of term, early termination either by the agreed notice or extinguish the contract for breach of contract, changes in the control of any of the companies party to the contract, declining creditworthiness or other cause is established.

Guarantees compliance: The contract should set the mode to ensure compliance with either personal guarantees (as the guarantee or bond) or collateral (as mortgage or pledge) or penalty clauses setting.

Competent court or submission to arbitration: In case of dispute, should be clear by both parties the Court to decide the case and sometimes, will be convenient to submit to arbitration, to be concrete (type of arbitration and competent tribunal)

Applicable law: The parties can choose which law applies to their contract. We encourage Spanish companies who choose Spanish Law.

Repeal of previous agreements: It is desirable to indicate that previous agreements between the parties are hereby repealed, from the entry into force of the contract being signed.

Possibility of transfer of contract: Usually prohibits the assignment of contract rights. If permitted assignment, safeguards must be established on the same.

Mechanisms for review: Systems should be established to review prices, based on indices such as the CPI or quotes international currencies or commodities. It is convenient to state clearly the calculation for review, and the dates that apply.

Confidentiality Clause: We suggest confidentiality clauses, sometimes become essential requirements.

Payment of expenses and taxes: It should establish who, when and how to pay the expenses and taxes that may arise as a result of the contract.

Other clauses that should be included: It is advisable to make provision for cases of force majeure. It is also desirable to set the home of the parties and how to communicate the change if thereof. You must specify the obligations around permits and authorizations, and the responsibility to get them. Last, recommend entering contract clauses to integrate, namely, if any inconsistency or invalidity of a clause, interpretation and the rest remain in force.

In summary, each contract will have its specific clauses, but it is useful to review these key points are present and remain written in the most favorable way possible. For this, we recommend the professional advice of a lawyer.

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