General commercial terms and standard-form contracts in international business relations

Abstract

The present paper discusses the importance of general commercial terms and business conditions as basis for the conclusion of commercial contracts. The paper describes the historical development of general commercial terms and the increasing importance of individually stipulated standard-form contracts as well as the influence of both legal sources on the contract practice in international trade. The notion “general commercial terms” (abbr. GCT) designates proposals for standard contracts as produced in many cases by neutral experts of national and international organizations, whereas the notions “terms of business” or “general terms of business” refer to standardform contracts which one party to a contract or both submit and which are accepted by the parties as basis of their negotiations. Subsequently, the advantages and disadvantages associated with the use of general commercial terms on the one hand, and individually negotiated terms of business on the other will be identified. The paper also distinguishes general contract conditions according to their types and formations, both from the point of view of international law and with regard to Czech statute law, as it is established mainly in the Civil Code. However, this paper does not only present the legal issues affiliated with the employment of general commercial terms and “parties’ terms of business”, it also focuses on the economic aspects of the use of established contract forms and conditions. Likewise, the paper is working out the areas where general commercial terms are applied in international trade and it points at important international organizations that work with, or contribute to, general commercial terms, such as the International Chamber of Commerce (ICC), the Institute for the Unification of Private Law (UNIDROIT), and the United Nations Commission on International Trade Law (UNCITRAL) etc. Thus, the work shall demonstrate the importance and indispensability of general contract terms and individually submitted and negotiated terms of business in the trade of goods, whether international or national.