Cross-border transactions form the core of global business in the current world economy. To companies entering into contracts with U.S. counterparts, however, understanding the nuances of contract law under the U.S. system is essential. At Najla Law Firm, we provide businesses with help to navigate legal risk management, enforceability, and costly disputes within cross-border commercial contracts.
Understanding U.S. Contract Basics in Cross-Border Deals
American contract law is otherwise governed by state statutes, each state being different in its own ways. While the Uniform Commercial Code (UCC) governs most commercial transactions, the interpretation of a contract and enforcement can be anything but uniform. The general principles of common law, such as offer, acceptance, consideration, and mutual assent, underlie the basis for labeling a contract as valid.
Jurisdiction and Choice of Law Clauses
The most severe issue in cross-border transactions is perhaps how the law of a given jurisdiction will be applied to the contract. Choice of law and jurisdiction clauses must be carefully drafted so as not to cause confusion. These clauses will typically be enforced by American courts, provided they are clearly worded—so they are risk management devices necessary for cross-border contracts.
Significant Contractual Traps to Avoid
The majority of foreign parties face issues of enforcement, dispute adjudication, and interpretation of contract terms in light of U.S. law. Unclear definitions, undefined terms, or the absence of an arbitration clause can lead to costly litigation. It is our day-to-day practice at Najla Law Firm to advise clients on the customization of contracts to the requirements of U.S. law taking into consideration international business practices.
The Role of Legal Counsel in Cross-Border Agreements
Having an experienced attorney is not only a good idea—it’s essential. At Najla Law Firm, our attorneys offer strategic legal guidance on international business agreements, foreign investment, intellectual property licensing, and more. We make certain that your agreements comply with U.S. law while shielding your international business interests.
Conclusion
Cross-border deals require more than a handshake. They require legally binding contracts that reflect business intent as well as enforceable U.S. legal principles. Najla Law Firm delivers the legality and clarity your global business needs.
