International contracts are those categories of contracts which are formed between parties belonging to different countries. Such contracts are written and formal documents which consist of all those details which are necessary for the parties to oblige by. International contracts are quite well detailed and can be written down in two languages each for the member of the country in his native language.
International contracts, like any other category of contracts are documents which are governed by law. This only difference is the fact that the laws of both the respective countries come into play and help force the terms and conditions into legally binding documents. This particular fact makes these contracts quite complex and has to be drafted carefully with legal help and guidance.
The main areas which make up any international contract are as follows:
- The effective dates of commencement and termination along with the conditions under which the contract can be extended.
- The details of the parties which include their names, addresses with country codes and their contact information including contact numbers, email addresses and fax number.
- The duties and responsibilities of the involved parties along with the nature and type of the business transaction taking place.
- The financial section of the contract is one where the monetary considerations are mentioned in a well detailed manner.
- The last part is the most important section of the legally binding terms and conditions. This must be detailed to the core so that no scope for confusion or misunderstanding is left between the parties.
In case where one of the parties fails to abide by the terms and conditions, the legal system of the countries of the parties comes into play and a body is employed to look into the matter and resolve the dispute. Thus international contracts are very important.