International Business Transactions

An international business transaction is any type of agreement between parties from at least two different countries. Examples of such agreements include sales, licenses, investments, joint ventures, technology transactions, development agreements and reseller and distribution agreements.

In an increasingly digitally interconnected world, businesses are constantly seeking to expand beyond their home country’s borders to access new markets and opportunities. However, such an expansion entails an intricate web of international laws and regulations that must be dealt with carefully. These international business laws play a crucial role in making international business transactions successful, but sometimes things do not go as expected and there are disputes. Ideally, documents would be drafted in such a way that disputes do not arise or are minimized.

An e-commerce transaction can be an international business transaction. The parties to international business transactions can include individuals, small and large multinational enterprises, as well as sovereign states.

Legal issues which arise deal particularly with the form and enforceability of contracts entered into and executed across electronically international borders. In addition to contract law and dispute resolution, international business transactions often require knowledge of, for example, commercial law, investment law and intellectual property rights.

The contracts for goods and/or services entered into by the parties may involve, among other things, things sold against letters of credit and guarantees. If something goes wrong with the transaction, legal issues such as interpretation may arise and raise questions of jurisdiction and choice and applicability of law.

Where private parties are involved in an international business transaction, the issues are generally governed by conflict of laws principles, whereby the law of the place of the defendant’s domicile determines which state has jurisdiction over the dispute. However, if the contract specifies which state or court within that state has jurisdiction in case of disputes, then a court generally respects a contractual choice of law clause.

If enforcement issues are contemplated, terms providing for private arbitration of disputes concerning international business transactions in a neutral third country can simplify enforcement.

International business transactions often involve working with parties from different cultural backgrounds who speak different languages. If things are not handled the right way in this regard, there could be miscommunications or misunderstandings that can jeopardize the chances of success of a transaction. At Kramer International Law, we understand the delicate nature of these important distinctions and help facilitate smooth communication to ensure that all parties are on the same page.

In addition, one of the most crucial aspects of international business transactions involve ensuring compliance with the local laws and regulations of the countries involved, which laws and regulations can vary significantly from one jurisdiction to another. Failure to comply can result in legal disputes, financial penalties, and even reputational damage. At Kramer International Law, we have an in-depth understanding of both international laws and regulations as well as the specific legal requirements of different countries, allowing us to protect our clients’ interests in the best possible way.

Since international business transactions involve additional risks, clients should work with an experienced international business transaction lawyer so that their interests are protected and to help ensure strong relationships with their foreign partners and that their international business objectives are met.

At Kramer International Law, we seek to enable our clients to expand their operations to other jurisdictions with confidence.