How can you resolve disputes from contracts negotiated abroad?

1 Know your contract

Before you sign any contract, make sure you understand its terms, conditions, and implications. Read it carefully and ask for clarifications or amendments if needed. If the contract is in a foreign language, get a professional translation or hire a local lawyer to review it. Check the applicable law and jurisdiction of the contract, and how they affect your rights and obligations. Avoid vague or ambiguous clauses that could lead to disputes later.

2 Communicate clearly

Communication is key to prevent and resolve disputes. Keep in touch with your contract partners regularly and update them on your progress, expectations, and feedback. Use clear and respectful language and avoid jargon, slang, or idioms that could cause confusion or offense. If possible, use the same language as your contract partners or hire a reliable interpreter. Document your communication and agreements in writing and keep records of them.

3 Seek mediation

If a dispute arises, try to resolve it amicably and informally with your contract partners first. Listen to their perspective and explain yours calmly and rationally. Try to find a mutually acceptable solution that preserves your relationship and reputation. If you cannot reach an agreement, consider seeking mediation. Mediation is a voluntary and confidential process where a neutral third party helps you and your contract partners negotiate a settlement. Mediation can be faster, cheaper, and more flexible than litigation.

4 Consider arbitration

If mediation fails or is not an option, you may want to consider arbitration. Arbitration is a binding and enforceable process where an arbitrator or a panel of arbitrators decides the outcome of the dispute based on the evidence and arguments presented by both parties. Arbitration can be more efficient, confidential, and neutral than litigation, especially if the dispute involves different countries and legal systems. However, arbitration can also be expensive, complex, and final, so you should weigh the pros and cons carefully.

5 Avoid litigation

Litigation is the last resort for resolving disputes from contracts negotiated abroad. Litigation involves going to court and having a judge or a jury decide the case. Litigation can be lengthy, costly, public, and unpredictable, and may damage your relationship and reputation with your contract partners. Moreover, litigation may involve different laws, procedures, and standards of evidence, depending on the jurisdiction of the contract. Therefore, you should avoid litigation unless you have a strong case and no other alternatives.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?