Cross-border (international) contracts

When concluding cross-border contracts, there are several points to consider in addition to general contract rules. Here are some important aspects to consider:

1.     Applicable law: It is important to determine which law is applicable to the contract. Normally, parties have the freedom to choose which country's law applies. Usually, the law of the country where the contract is concluded or the law of the other contracting party's country will be chosen. However, EU regulations or international agreements may also specify a particular law.

2.     Jurisdiction: If a dispute arises, it must be determined which court will hear the case. Therefore, it is useful to contractually establish this in advance. Again, jurisdiction can generally be freely chosen.

3.     Translations: If the contract is written in a language other than the contracting parties' mother tongue, a translation should be made. This translation should be prepared by a competent person or organization to avoid misunderstandings.

4.     Cultural differences: Cultural differences should also be considered in cross-border contracts. It may be helpful to inform oneself about the cultural customs of the country where the contract is concluded.

5.     Currency: If payment is made in a currency other than the contracting parties' own, payment terms should be clearly and unambiguously formulated. Exchange rates and possible fluctuations should also be taken into account.

6.     Taxes and duties: Cross-border contracts must also comply with tax and customs regulations. Depending on the country and type of contract, different regulations may apply. Also, to be considered are any social security regulations if services (e.g., music or theater performances abroad) are provided.

7.     Contractual arrangements: Finally, all contractual arrangements should be clearly and unambiguously formulated to avoid misunderstandings. It may also be useful to consult a lawyer or an expert in international contract law.