International Trade Contracts Research Articles

The Impact of International Commercial Customs (Lex Mercatoria) on International Commercial Arbitration

Lex Mercatoria play a crucial role in resolving disputes arising from international trade contracts before arbitration bodies, thus establishing them as an independent legal system capable of regulating international commercial relations. This legal characteristic imposes a certain obligation on various arbitration bodies to apply them to the disputes brought before them, either based on the parties' intentions or based on the legal force inherent in those customs. Consequently, this research examines the extent of recognition of the binding force of commercial customs before arbitration bodies, and based on that, it elucidates the authority of these bodies in applying them to international trade disputes. It is evident that these customs, due to their flexibility derived from the nature of commercial transactions and the customary practices of traders resorting to them, have become today an independent legal system that imposes itself on arbitration bodies even if the parties did not choose to apply those customs. This paper recommends the Jordanian legislator to explicitly adopt the application of these commercial customs in the Jordanian Arbitration Law texts, following the example of national and international comparative legislation.

Application of UNIDROIT Principles in International Trade Contracts in Indonesia

This research explains the application of UNIDROIT principles in international trade contracts in Indonesia. This research uses normative legal methods, which examine the legal principles written in statutory regulations. The UNIDROIT principles, which are considered global guidelines in international private law, are used as a framework in this research. The research results show that UNIDROIT principles, such as freedom of contract, good faith and compliance, legal certainty, contract formation, obligations of the parties, dispute resolution, have played an important role in creating a stable and reliable legal environment in international trade contracts in Indonesia . These principles help increase trust between parties involved in cross-border trade transactions and facilitate the resolution of disputes in a peaceful and efficient manner. from this research, it can be concluded that the application of UNIDROIT principles has provided great benefits for business people in Indonesia, both in terms of increasing legal certainty and facilitating sustainable international trade. However, to maximize the benefits of implementing UNIDROIT principles, concrete steps are needed such as ratification of the UPICCs, adjustments to national contract law, and strengthening of legal infrastructure. Thus, this research provides a comprehensive view of the importance of applying UNIDROIT principles in the context of international trade contracts in Indonesia.

Positive Changes and Remaining Shortcomings of Incoterms®2020

With the deepening of reform and opening up, China has become the world's second largest economy. The huge volume of trade highlights the importance of understanding and familiarizing oneself with relevant trade rules. International Commercial Terms published by the International Chamber of Commerce is currently the most widely accepted and authoritative commercial practice in the world. When parties enter into international trade contracts, they often refer to relevant trade terms to regulate some of the rights and obligations of buyers and sellers. Therefore, it is necessary to study this general rule. The International Chamber of Commerce officially launched Incoterms®2020 in January, 2020, which requires both trading parties trade with each other according to it. By analyzing the positive changes and remaining shortcomings of Incoterms®2020 will have a significant impact on both sides of trade. And how to correctly select and apply Incoterms®2020 in the contract based on specific trade scenarios in negotiation and contract negotiation work will enable domestic trade enterprises and practitioners to prepare in advance for the use of the new general rules, thereby reducing the probability of improper use of trade terms and reducing transaction risks and additional costs caused by improper use of trade terms. As is mentioned above, the paper is organized for the purposes of providing reference and inspiration for parties engaged in international commercial activities both domestically and overseas.

Judgment Standards of Chinese Courts when Impediments to Performance of Contracts Arise in International Trade Contracts

Purpose: This paper analyzes trends in court rulings as well as application of the law to China's international trade activities in contract disputes caused by COVID-19.
 Research design, data, and methodology: This paper adopts a case study approach by analyzing the application of legal provisions to the judicial practice of Chinese courts in international contractual disputes for goods related to the pandemic.
 Results: Case analysis shows that COVID-19 is an obstacle to the performance of China's international trade contracts, and Chinese courts still follow the principle of first examining whether there is a force majeure clause in the contract between the parties.
 Conclusions: This paper suggests it is necessary to include specific contractual provisions relating to hardship and force majeure in order to establish the intended allocation of contractual risk well in advance.

Substantive Scope of Arbitrator Restitution as a guarantee of litigation in international trade contracts

Stakeholders of international trade with its various patterns were keen on seeking further legal, financial, procedural, judicial and other guarantees, and managed to get guarantee of initiation of arbitration in the competent international arbitration centers which have become a reality for this type of contracts. As a result, legislation of countries in general, including Arab countries, were driven to enact laws of international commercial arbitration perception of their importance in attracting foreign investments and facilitating dealing with international trade contracts of various patterns. This legislation contained within its provisions cases whereby arbitrators can recuse arbitrator and relieve him from consideration of the arbitration litigation in case of realization or appearance of some reasons that challenge its impartiality and independence. Those provisions- the provisions of arbitrators' restitution- constitute important guarantee for arbitrators to be granted professional neutral award away from defect or deficit that may mar it. This research handles the matter of arbitrators' restitution and the stance of legislation and arbitration centers of this important matter, in addition to reference to some decisions that were made by the competent authorities to consider the restitution requests based on legal grounds.

Legal Guarantees Against Breach of International Trade Contracts Due to Non-Conformity of Goods Details reviewed from the CISG

in international contract transactions are currently not a difficult thing, the existence of these various technological advances provides a considerable opportunity and opportunity for the international community to establish cooperative relations between them. The execution of the contract in various ways can certainly cause problems or obstacles, especially in long-term contracts, it can be due to discrepancies in the details of the goods sold, the existence of force majeure circumstances that can result in the contract being unenforceable, or there may be changes in circumstances, such as political crises, currency fluctuations, economic crises. However, this study will focus more on discussing legal guarantees against violations of international trade contracts due to discrepancies in the details of goods reviewed from the CISG. International business cooperation transactions are the study of private law, where in private law, the law provides wider opportunities for each party to make, promise and implement the clauses they make. However, it is undeniable that to be able to carry out these activities, the parties must carefully understand and understand the legal rules that exist in the State of each party.
 The research method carried out uses normative juridical, i.e legal studies carried out by using examining library materials or secondary legal materials. Meanwhile, in collecting data, it is carried out with two approaches, namely the conceptual method and the statutory technique. The purpose of this research is to find out how the legal guarantees that apply in international trade contract law if there is a violation in the contract due to discrepancies in the details of the goods received and what form of settlement efforts can be made by sellers and buyers in international trade contracts. This research resulted in a relationship to the legal guarantee of a breach of an international trade contract and what efforts were made by the parties to the matter in terms of the CISG international contract transactions are currently not a difficult thing, the existence of these various technological advances provides a considerable opportunity and opportunity for the international community to establish cooperative relations between them. The execution of the contract in various ways can certainly cause problems or obstacles, especially in long-term contracts, it can be due to discrepancies in the details of the goods sold, the existence of force majeure circumstances that can result in the contract being unenforceable, or there may be changes in circumstances, such as political crises, currency fluctuations, economic crises. However, this study will focus more on discussing legal guarantees against violations of international trade contracts due to discrepancies in the details of goods reviewed from the CISG. International business cooperation transactions are the study of private law, where in private law, the law provides wider opportunities for each party to make, promise and implement the clauses they make. However, it is undeniable that to be able to carry out these activities, the parties must carefully understand and understand the legal rules that exist in the State of each party.
 The research method carried out uses normative juridical, i.e legal studies carried out by using examining library materials or secondary legal materials. Meanwhile, in collecting data, it is carried out with two approaches, namely the conceptual method and the statutory technique. The purpose of this research is to find out how the legal guarantees that apply in international trade contract law if there is a violation in the contract due to discrepancies in the details of the goods received and what form of settlement efforts can be made by sellers and buyers in international trade contracts. This research resulted in a relationship to the legal guarantee of a breach of an international trade contract and what efforts were made by the parties to the matter in terms of the CISG

Franchise Contract in International Trade Law

The international contract is of interest to all states because of its value. It represents a way in which international exchanges can be realized, its role in international economic relations giving the parties the opportunity to use the advantages of arbitration and autonomy of will. The main legal instrument used to promote international relations is the contract. Compared to other fields, the legal relationships resulting from contracts are numerous and frequent. International trade contracts are distinguished by certain particularities, because according to their nature, they constitute a form of contracts regarding commercial activity. However, international trade contracts, compared to domestic contracts, do not remain subject to national law and differ from them by the existence of specific elements of internationality. An important moment in the existence of a contract is that of formation. All aspects related to the formation of contractual relations are influenced by the exact knowledge and correct application of the practice of concluding the contract. International trade contracts differ from commercial contracts concluded between participants in domestic trade by means of the extraneous element it contains, an element that, together with the commerciality element, delimits the international trade contract from the other contracts that are regulated by the rules of general law. From the category of contracts that are part of the field of international trade law, the franchise contract has had a rapid evolution, having the ability to adapt and introduce new services, products and techniques to the market, the extent of which has taken over time having practically no tendency to decrease nowadays, more and more merchants end up concluding such contracts. Thus, the franchise contract is both a relatively safe and cheap method of obtaining profit, as well as the most agreeable tool of globalization, attributed to the current consumer society.

The Role of Sports Contracts in International Trade Contracts

Sports activities, which were originally considered entertainment, have become a large industry and, consequently, their commercial dimensions have gained special prominence. Iurged to address this problem in the form of scientific research the fact that, now, sport is an independent commercial phenomenon, both in civil and international trade. Thus, in the first place, the concept of sports contracts is analyzed. This research has used descriptive, analytical methods and bibliographic research with valid legal sources to collect information. The results ofthe study showed that the formation and dissolution ofthe sports contract is subject to special rules, international and national, which have distinguished it from the general rules of other contracts. Therefore, due to the expansion of professional sport, special regulations in various sports-related fields are an undeniable necessity and, at the same time, a novel field for scientific legal study.

УПРАВЛІННЯ КОНТРАКТНОЮ ДІЯЛЬНІСТЮ СУБ’ЄКТІВ ЗОВНІШНЬОЕКОНОМІЧНОЇ ДІЯЛЬНОСТІ В УМОВАХ РОЗВИТКУ ПРОСТОРОВО-ЕКОНОМІЧНИХ СИСТЕМ

In the presented article the problems of structure, adaptation, implementation and realization of the international contracts have been researched according to the international norms and principals of the free selected character of the contracts and its implementing in the terms of EU and international process and condition of oriental economical systems mutual influence. In present, can be discussable the results of mutual influence of the oriental economical system. The separate point can be researched as overseas business activity of the Companies which being provided on the base of signed International Trade Contracts. In this circumstances International terms and conditions are seemed vital and necessary for use and need to be well interpreted and implemented. In this way Lex merkantoria is acceptable and need to be used, applied within negotiation and Contract preparing. Lex merkantoria is devoted to trade terms and payment conditions. Local juridical systems of the countries mostly well synchronized with world accepted trade principles. But in some cases there is possible that domestic regulation system tries to influence toward foreign trade cases. It can be visual within a preparation for foreign trade Contracts fulfillment or payment, custom clearance procedure. We need to know that within a negotiation the Parties need to present and discuss all the Contract points. The results of those negotiations are need to be written by and properly signed. No other third Part has a right to influence or over revise the negotiated Contract points. In Ukraine the Local Official Authorities, Commercial Enterprises try to regulate, revise and impact toward already signed and agreed foreign trade Contracts. This is totally against and not in conformity with the rules and principals of the International rules and regulation. Important that within a COVID 2019 problem the number of the active Enterprises started to use a digital documents. The International trade Contracts paper version takes different attitude and no other Party has a right to influence. That is why some discussable items of that will be presented below.

Enforcement and Construction of International Trade Contracts.

Enforcement and Construction of International Trade Contracts.

Currency Choice in Contracts

Abstract We study the interaction between the currency choice of private domestic contracts and optimal monetary policy. The optimal currency choice depends on the price risk of each currency, as well as on the covariance of its price and the relative consumption needs of the agents signing the contract. When a larger share of contracts is denominated in local currency, the government can use inflation more effectively to either redistribute resources or reduce default costs, which makes local currency more attractive for private contracts. When governments lack commitment, competitive equilibria can be constrained inefficient, thus providing a reason to regulate the currency choice of private contracts. We show that both the equilibrium use of local currency and the implications for regulation depend on the level of domestic policy risk. Our model can explain the wide use of the US dollar in international trade contracts and the observed hysteresis in dollarization.

Klausula Boiler Plate dalam Pembuatan Kontrak Dagang Internasional

In an international trade contract, the parties are bound by different legal provisions, different languages and also different customs and cultures. This condition creates a big risk in implementing the substance of the contract. To anticipate this risk, there are several steps that can be taken by the parties in terms of arranging and creating the contents of their contracts. This article will discuss the part of the contract that is often regulated in international trade contracts, called the boiler plate clause. This article is the result of normative research, both related to national legal norms, namely the Civil Code, Uniform law and examples of international trade contracts. A contract is a mechanism for expressing all the wishes of the parties agreed to by other parties. In current developments, contract clauses are no longer just the essentials of the agreement. There are other clauses which have the function of further clarifying how the contract must be interpreted and as an effort to cover all opportunities for contract failure, including what are called boilerplate clauses. In the practice of making international trade contracts, there are several substances that need to be regulated in boilerplate clauses, including choice of law provisions, choice of forum provisions, language provisions, severability provisions, integration provisions, notices provisions, force majeure provisions, duration of contract provisions, obligation after termination provision.

النظام العام وأثره على مدى توافق حکم التحکیم مع الأسس العامة للعقود الإداریة

يعتبر اللجوء الى التحکيم لفض المنازعات العقدية من الامور المسلم بها في وقتنا الحالي نظرا للمميزات التي يتمتع بها النظام القانوني للتحکيم، ومع تطور دور الدولة وانتقالها من الدولة الحارسة الى الدولة المتدخلة جعل منها طرفا في عقود التجارة الدولية وعقد الأستثمار ووعقود استغلال الموارد الطبيعية، وبطبيعة الحال فأن الجهات الأجنبية المتعاقدة مع الدولة تشترط فض المنازعات من خلال الجوء الى التحکيم لاتمام العقد. الا ان للعقود الإدارية طابعها الخاص، حيث تکون الجهة الإدارية المتعاقدة في مرتبة اعلى من المتعاقد معها وتتمتع بسلطات لا وجود لها في القانون الخاص، کما ان العقود الإدارية ترتبط بقواعد القانون الإداري والذي تعتبر جميع قواعده من قواعد النظام العام التي لا يمکن مخالفتها او تجاوزها، لذلک تظهر لدينا مشکلة تتعلق بتعارض اللجوء الى التحکيم مع النظام القانوني للعقود الإدارية وکيفية التوفيق بينها. لذلک سيقوم الباحث بتوضيح أث النظام العام على حکم التحکيم مع الأسس العامة للعقود الإدارية، حيث ينقسم هذا البحث الى مطلبين: إحداهما نتحدث فيه عن الأسس العامة للعقود الإدارية، والثاني نتحدث فيه مدى تعارض اللجوء للتحکيم مع النظام القانوني للعقود الإدارية والحلول المقترحة. Resorting to arbitration to settle contractual disputes is a recognized issue in our time due to the advantages enjoyed by the legal system of arbitration, With the development of the state’s role and its transfer from the guardian state to the intervening state, it was made a party to international trade contracts, investment contracts and contracts for the exploitation of natural resources, Of course, foreign parties contracting with the state stipulate the settlement of disputes through resorting to arbitration to complete the contract. However, administrative contracts have their own character, whereby the contracting administrative authority is at a higher rank than the contracting party and has powers that do not exist in private law, Also, administrative contracts are related to the rules of administrative law, all of which are considered public order rules that cannot be violated or transgressed. Therefore, we have a problem related to the conflict of resorting to arbitration with the legal system of administrative contracts and how to reconcile them. Therefore, the researcher will clarify the effect of the public order on the arbitration award along with the general foundations of administrative contracts, as this research is divided into two requirements: one of which we talk about the general foundations of administrative contracts, and the second we talk about the extent to which resorting to arbitration conflicts with the legal system of administrative contracts and the proposed solutions.

COVID-19 and International Trade Contracts: Is COVID-19 Force Majeure?

COVID-19 pandemic has changed the world and our lives, many economic activities have been suspended; consequently, many contracts have not been performed or there was a delay in performance. This paper aims to analyse the impact of COVID-19 on international trade contracts; in particular, whether or not COVID-19 can be considered force majeure. After a short definition of force majeure, the paper analyses the text of the Vienna Convention on International Sale of Goods (CISG) and the relative case law, then the impact of COVID-19 under English law. In the end, some conclusive remarks.

Review of the Volume ”Principalele contracte de comerț internațional” [Main International Trade Contracts], Author: Dumitrița Florea, Lumen Publishing House, 2017

"Principalele contracte de comerţ internaţional” [Main International Trade Contracts] is a book written by Dumitrița Florea and published by Lumen Publishing House from Iasi, Romania, a volume that explains and captures in a clear and structured way the various types of existing contracts that are subject to international trade. This paper was published in 2017, a year when international trade experienced a significant recovery, much more synchronized and generalized compared to previous years, which were marked, in various proportions, by the effects of the crisis of 2008-2009. During this period, the main trend identified is the reorientation, with a new force, of business to the international space, considered profitable and promising.

التحکیم التجاری الدولی عبر تقنیة المعلومات لمواجهة فیروس کورونا

تعرض العالم خلال الأشهر الأخيره من عام 2019 وحتى تاريخه إلى فيروس کورونا الذي وضع العالم في مأزق کبير فأودي بحياة الملايين من البشر دون أن يستجيب لصرخاتهم، ولم يقتصر تأثيره على هذا فحسب بل امتد ليؤثر بشکل أکبر علي الاقتصاد العالمي لتشهد أسواق العالم تهديدا کبيرا بالرکود الاقتصادي ، نتيجة توقف حرکة التجارة الدولية نتيجة التدابير الاحترازية التي فرضتها الدول في محاولة منها لوقف زحفه نحو المزيد من الأرواح، وهو ما کان له بالغ الأثر علي عقود التجارة الدولية التي تقاعست عن الوقاء بالالتزامات الجوهرية لتتوالي الخسائر على الصعيد المالي للعديد من الشرکات، وهو ما يمنح الطرف المتضرر من التوقف عن الوفاء بالالتزامات العقدية الرجوع إلى بنود العقد للاطلاع علي البنود المتعلقة بسبل فض المنازعات المتفق عليها عند إبرام العقد، والتي غالبا ما تنحصر في اللجوء إلى التحکيم کوسيلة لفض المنازعات، غير أن اللجوء إلى التحکيم التجاري الدولي في مثل هذه الظروف تحيط به العديد من الموانع منها الانتقال والسفر بما يمکن الأطراف من اللجوء الي مراکز التحکيم الدولية التي تقع خارج نطاق الدولة، ولعل ذلک هو ما دفع المجتمع التحکيمي الدولي إلى إعادة إحياء ما سبق المناداه به، وهو الاستعانة بتقنية المعلومات في مجال التحکيم التجاري الدولي، والتي بات ضرورية ملحه وهامة فلم يعد اللجوء إليها رفاهية، وإنما ضرورة تقتضيها الظروف ومن هنا کان لزاما علينا أن نتعرض للتحکيم التجاري الدولي عبر تقنية المعلومات لمساعدة الأطراف في التعرف عليه بطريقة أکثر دقه من خلال الوقوف على کافة جوانبه من حيث ماهيته وجوانبه الإجرائية ومشروعية اللجوء إليه وفقا للقوانين الوطنية والاتفاقيات الدولية. In the last months of 2019, the world was exposed to a great predicament, putting the world in a great predicament. Millions of people died unresponsive, not only to their robberies, but also to a greater impact on the world economy, and the world's markets suffered a major recession, as a result of the cessation of international trade as a result of the precautionary measures imposed by States in an attempt to stem their advance. This has had a severe impact on international trade contracts, which have failed to meet the core obligations of many companies in order to cause financial losses, thus giving the injured party's cessation of performance of contractual obligations reference to the terms of the contract for the terms on the means of resolving disputes agreed upon at the conclusion of the contract, which are often limited to recourse to arbitration as a means of dispute resolution. However, the use of international commercial arbitration in such circumstances is fraught with many impediments, including transportation and travel, to enable parties to resort to international arbitration centres located outside the State, perhaps as a result of which the international arbitral community has revived what has already been advocated. The use of information technology in the field of international commercial arbitration, which has become urgent and important, is no longer a luxury but a necessity of the circumstances. We must therefore be exposed to international commercial arbitration through information technology in order to help the parties to identify it in a more accurate manner by identifying all its aspects in terms of its nature, procedural aspects and the legality of its use in accordance with national laws and international conventions.

The Intermediation as Alternative Mean to Settle Crisis of International Trade Contracts

The Intermediation as Alternative Mean to Settle Crisis of International Trade Contracts

The regulatory power of international trade contracts over 19th century Dutch commercial sales law

Assistant Professor Janwillem Oosterhuis (Faculty of Law, Maastricht University) traces the historical development of international trade contracts, suggesting an important influence from 19th century Dutch commercial sales law.
 Index keywords: Netherlands, sales law, commercial law, legal history, international trade law

Modelling the Risks of International Trade Contracts

Current globalization trends in the global economy and trade, as well as integration processes, have significantly aggravated competition and complicated the nature of the foreign economic interaction of companies from different countries. At the same time, the ambiguity in the development of these processes is expressed by the increased degree of probability of the influence of numerous uncertainty factors in international markets, generating a set of specific foreign trade risks and financial losses; which are exposed to most foreign and domestic companies engaged in foreign economic activity. The contract risk management methodology proposed in the article will allow the decision-maker: to avoid opportunity costs and direct costs, as well as take preventive measures commensurate with the risks. A company may consider several alternative strategies: attract a contractor (accept risk); attract a contractor while maintaining control over business processes (mitigate the risk) and provide the service yourself (avoid the risk associated with attracting contractors).

The Compatibility of Arab Laws and Modern International Trends with the Freedom of Parties to Choose the Law Applicable to International Trade Contracts

This article deals with the compatibility of the Arab laws and modern international trends represented in the principles of The Hague Conference (2015), on the freedom of the parties to choose the law applicable to international trade contracts in two sections. The first indicates the compatibility of an international issue; whereas the second section tackles discrepancies and contrasts in the scope of the freedom granted to the parties to choose law through the study of four axes: the extent of freedom in the selection of legal rules that disregard the legal system of any state, the extent of the link between the law selected, the parties, contract, the forms of choice, and the issue of the ability to modify the choice of contract. It concludes with the results of the differences between the Arab laws and the latest international trends in this regard, together with recommendations for Arab legislators to keep up with the legislative developments in this regard.