International

Which clauses should definitely be included in international contracts?

International transactions are often complicated and risky. To effectively protect yourself, it is crucial to carefully draft contracts based on national standards and specifically use contractual clauses for risk minimization, legal protection, and legal optimization, regardless of the country in which you operate.

To draft international contracts in a legally compliant and optimized manner, it is necessary to be familiar with the following types of clauses and know how to use them appropriately :

  • Arbitration clause
  • Confidentiality clause / Non-disclosure clause
  • Currency clause
  • Force majeure clause
  • General Terms and Conditions (GTC) Acceptance Clause
  • Governing law clause
  • Hardship clause
  • Hold harmless clause
  • Intellectual property clause
  • Jurisdiction clause
  • Liability clause
  • Non-compete clause
  • Termination clause

Our lawyers specializing in international, commercial and trade law help companies use types of clauses tailored to each contract in order to legally optimize them and maximize the security of any international contractual relationships with foreign business partners.

Why should an Arbitration clause be included in international contracts?

Arbitration proceedings allow disputes to be resolved outside of national courts by an international arbitral tribunal, which can consist of one or several arbitrators (usually three). International arbitration has many advantages, especially in an international context. It is generally faster and more flexible, and the proceedings are more confidential. Arbitrators appointed by the parties are highly experienced and knowledgeable, which makes arbitration often more efficient.

Our lawyers specializing in international, commercial and trade law will support you in negotiating and formulating an arbitration clause tailored to your specific situation – whether it be a contractual arbitration clause or an arbitration agreement after a dispute has arisen – in a legally secure manner, taking into account all relevant legal and economic conditions.Our lawyers specializing in international, commercial and trade law will support you in negotiating and formulating an arbitration clause tailored to your specific situation – whether it be a contractual arbitration clause or an arbitration agreement after a dispute has arisen – in a legally secure manner, taking into account all relevant legal and economic conditions.

Why should a Confidentiality clause (Non-Disclosure clause) be included in international contracts?

A confidentiality clause protects sensitive information, such as trade secrets, customer data, and other confidential content, from unauthorized disclosure or use by the other party to the contract. This type of clause is essential for cross-border research and development contracts and international company acquisitions, as it ensures your company’s long-term competitiveness.

Our lawyers specializing in international, commercial and trade law help formulate clear and effective confidentiality clauses to ensure the reliable protection of sensitive data in all international transactions.

Why should Currency clauses be included in international contracts ?

Specifying the contract currency reduces uncertainties associated with exchange rates and establishes secure payments with foreign business partners. A currency clause helps identify financial risks due to currency fluctuations early on and manage them effectively.

Our lawyers specializing in international, commercial and trade law can assist you in negotiating and formulating appropriate currency clauses, regardless of the contract’s currency.

Why should international contracts include a Force Majeure clause?

A force majeure clause protects against liability if an unforeseeable external event, such as a natural disaster, strike, or health crisis, makes it impossible to fulfill the contract. In such cases, contractual obligations can be temporarily suspended, or the contract can be terminated without fear of penalties, such as fines.

For example: If a supplier’s production facility is destroyed by fire, the force majeure clause allows to temporarily suspend one’s performance obligations toward the foreign business partner without triggering penalties or claims for damages.

Our lawyers specializing in international, commercial and trade law can help you draft a customized force majeure clause to protect you against unforeseeable and uncontrollable events.

Why should international contracts include a General Terms and Conditions (GTC) Acceptance clause?

In international business transactions, it is important to clearly state in the contract that both parties accept the applicable general terms and conditions (GTC). International GTCs often contain special clauses regarding the choice of law, dispute resolution through arbitration or jurisdiction, and indemnification or limitation of liability. An explicit GTC acceptance clause helps avoid misunderstandings, especially when the contracting parties come from different legal systems. This clause enhances legal clarity and reduces the risk of subsequent disputes. Our lawyers specializing in international, commercial and trade law can help you draft a GTC acceptance clause that complies with national regulations in France, Germany, and other countries. We collaborate closely with our foreign colleagues from our a-Global partner network to accomplish this.

Why should international contracts include a Governing Law clause?

Choosing the applicable law is one of the most important aspects of drafting international contracts. In the event of a dispute, the chosen law determines which legal provisions are used to interpret and resolve the contract. Selecting a suitable legal system helps keep legal risks under control and avoid unexpected legal consequences. Our lawyers specializing in international, commercial and trade law will support you and your company in selecting the appropriate legal system for each contract and enforcing it with your business partner. This provides legal certainty for your contracts, whether in France, Germany, or a third country. In close cooperation with our foreign colleagues from our a-Global partner network, we ensure the chosen legal system is included in the contract as part of an effective choice-of-law clause.

Why should Hardship clauses be included in international contracts?

A hardship clause allows the terms of a contract to be adjusted if unforeseen circumstances make it unreasonable or economically infeasible for one of the parties to fulfill the contract. It enables the parties to find a mutually acceptable solution without terminating or rescinding the contract, which is particularly advantageous in long-term business relationships. For instance, if a supplier’s production costs rise significantly due to increased raw material prices, the clause enables price negotiations without terminating the contract. Our lawyers specializing in international, commercial and trade law can help you negotiate and draft a balanced hardship clause that considers the interests of both parties and complies with the applicable law.

Why should a Hold Harmless clause be included in international contracts?

A hold harmless clause in a contract can protect you against legitimate claims by third parties. In the event of a third-party claim, the clause stipulates that your contractual partner, not you, is liable for any claims, costs, or damages asserted by the third party. While the clause does not directly shield you from third-party claims, it shifts the responsibility and financial consequences to your contractual partner.
For example: If a company is sued by a third party because a subcontractor, who is contractually bound to the company, has made a mistake, the hold harmless clause in the subcontractor agreement may stipulate that the subcontractor, not the company, must pay compensation to the third party. Such clauses are particularly common in international subcontracting and cross-border service contracts, as well as in international distribution agreements.
Our lawyers specializing in international, commercial and trade law will help you adapt the hold harmless clause to the project’s specific risks and requirements in a legally compliant manner, taking into account applicable laws in France, Germany, and other countries. We collaborate closely with our foreign colleagues from our a-Global partner network.

Why should international contracts include an Intellectual Property clause?

When working with foreign business partners, you often grant them access to protected content, such as logos, technical documents, trademarks, and know-how. Without clearly defined contractual limitations on this use, there is a risk that your business partner will use these rights outside the scope of your agreement and without your consent with regard to third parties.
A specific intellectual property clause allows you to define exactly how your foreign business partner can use your company’s trademarks, patents, designs, logos, and confidential information. This protects your company’s assets and maintains control over sensitive intangible rights.
Our lawyers specializing in international, commercial and trade law will help you structure the use of intellectual property in international contracts in a legally secure and effective manner, tailored to the national laws of France, Germany, or a third country. We work closely with our foreign colleagues from our a-Global partner network to achieve this.

Why should a Jurisdiction clause be included in international contracts?

A jurisdiction clause specifies which court is responsible for resolving any disputes that may arise. You can choose a court in your own country, in the country of the contractual partner, or a neutral court. This allows you to clearly determine in advance which court will hear any potential disputes.
Example: If you enter into a contract with a foreign business partner and agree to the jurisdiction of the German courts, then all disputes must be heard before a German court.
Our lawyers specializing in international, commercial and trade law can advise you on choosing the appropriate place of jurisdiction and help you draft a legally secure and effective jurisdiction clause.

Why should a Liability clause be included in international contracts?

A limitation of liability clause allows you to reduce or eliminate the financial consequences of contract breaches, either partially or entirely. This type of clause may exclude certain breaches of duty, limit possible claims for damages, or exclude certain types of damages, such as lost profits or business interruption. It may also precisely define cases in which a contracting party is not obligated to pay compensation.

For instance, if a supplier delivers late, the clause may stipulate that only direct damages will be compensated, not loss of revenue or consequential damages.

This clause is particularly relevant in import-export contracts subject to the Vienna Convention on the International Sale of Goods (CISG) of April 11, 1980. This uniform international contract law allows for a high degree of contractual freedom, enabling far-reaching provisions on limitation of liability that would not be permissible under German or French law.

Our lawyers specializing in international, commercial and trade law will help you draft clauses that will precisely and effectively secure your contracts. We ensure that international contractual relationships include an explicit general terms and conditions (GTC) acceptance clause in addition to the limitation of liability clause usually contained in the GTC.

Why should a Non-Compete clause be included in international contracts?

A non-compete clause prevents the other party to the contract, such as a distribution or co-development partner, from competing directly with your company during or after the term of the contract. This protects your trade secrets, strategic projects, and customer relationships from unfair competition.
For instance, if you develop innovative technology with a foreign business partner, the non-compete clause can prevent them from using the acquired knowledge to establish a competing company.
Our lawyers specializing in international, commercial and trade law will help you draft legally compliant, balanced non-competition clauses tailored to your needs to effectively protect your strategic projects and investments.

Why Include a Termination Clause in Your International Contracts?

A termination clause sets out the conditions under which you may terminate a contract without incurring penalties. It enables you to end the contractual relationship in an orderly manner if the other party fails to meet its contractual obligations. This helps prevent you from being locked into an unprofitable business relationship.
For example, if a supplier fails to comply with agreed delivery deadlines or product quality standards, a termination clause allows you to terminate the contract without having to pay penalties or damages, enabling you to quickly identify and engage a more reliable business partner.
Our international business lawyers assist you in drafting termination clauses that effectively protect your interests in the event of a breach of contract, whether in France, Germany, or a third country. We work closely with our foreign colleagues and trusted partners within the international a-Global network to provide seamless cross-border legal support.

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