International agreements are formal understandings or commitments between two or more countries. An agreement between two countries is called a “bilateral agreement”, while an agreement between several countries is “multilateral.” The countries bound by an international agreement are generally referred to as “States Parties.” 

Before you start drafting or enter into a contract with an international business, it is important to know if your contract is legally enforceable. In some situations, courts will not enforce a contract. For example, a valid legal contract requires that the parties entering into a contract be legally competent, meaning they have the mental capacity to be responsible for their actions and decisions. However, if a person enters into a contract but can't understand what he or she is doing by signing it, the court may decide that the person lacked the capacity to contract and not enforce it. 

 An illegal contract either specifies prohibited goods or services, or requires illegal activity in order to fully perform its terms. With the nature of being international business, it involves many layers of the law, contracts that would be very much legal in one county however in another country it may be illegal and unenforceable in that certain country's court. It’s important to know with certainty what the local acknowledgments and enforcements are for your agreement. 

How are international agreements enforced?

International conventions are treaties that are signed between two or more nations that are under the International Agreement. The treaty is a binding agreement between the nation-states that is formed for use in international law. International agreements are enforced by each signing party's adherence to the treaty. It is created as a mechanism to ensure compliance and also include methods for not enforcing noncompliance such as the economic sanctions. Within the outside of the internal mechanism, states are able to resort to external enforcement methods through other ways including the threat of military actions. 

Being in a legal dispute is troublesome enough, so following the treaties in place - whether you’re operating in the United States or not is incredibly important. This can be tricky due to the sheer number of international contracts that can be put in place. Believe we’ve listed some contact types you should be aware of if you’re conducting International Business. 

Types of International Contracts

Examples of international contracts include:

• International distribution agreements

• Intellectual property licenses

• Investment agreements

• International sales contracts

• Supply agreements

• Letters of credit

• Franchise agreements

• Joint venture agreements

• Development agreements

It’s important that you know what contracts to be aware of, and how they function. That’s where we come in. We’ll handle your International contracts so you can get back to doing what you love. Click HERE to learn more about hours we can protect your legal interests while operating overseas.