Contracts play a vital role in international commerce, and their significance is magnified in the context of cross-border transactions. This is reinforced by various legal norms and case laws from the United States Supreme Court, which have shaped the principles governing international contracts and agreements. You’re already aware that you need contracts; but why exactly are contracts so important in your dealings?
- Legal Norm: Choice of Law Clauses The U.S. Supreme Court has recognized the importance of choice of law clauses in international contracts. In the case of M/S Bremen v. Zapata Off-Shore Co. (1972), the Court upheld a forum selection clause and emphasized the need to respect parties' contractual agreements on choice of law and jurisdiction.
- Legal Norm: Enforceability of Arbitration Clauses The U.S. Supreme Court's decision in Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc. (1985) highlighted the strong federal policy favoring the enforcement of international arbitration agreements. The Court held that parties should be held to their agreements to arbitrate disputes rather than litigate them.
- Legal Norm: The New York Convention While not a U.S. Supreme Court case, the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention) is a significant international treaty that the Court has acknowledged. It facilitates the recognition and enforcement of arbitral awards across different jurisdictions.
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