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International commercial dispute - Coggle Diagram
International commercial dispute
Planning for disputes:
Helps to minimize risks in advance
Importance of the contract cannot be overstated
Terms of the contract will provide basis for dispute resolution
Avoiding business disputes
Trust
Friendly and amicable settlement
Have knowledge about cultural differences
Alternative dispute resolution (ADR)
A faster, cheaper and more efficient way to resolve disputes than litigation
Parties must voluntarily submit
Mediation
&
Arbitration
Many contracts contain arbitration clauses
Courts of most nations recognize arbitration awards
Litigation
A case, which is brought before a court, by parties involved, for resolution
Differences in legal systems
Procedural law
Avoid differences by adding law clauses to the contract
Substantive law
Need to determine which court has jurisdiction .
Power of a court to hear and decide a case
Can only obtain jurisdiction by a proper service of process
Include a forum selection clause as a provision in a contract to choose the jurisdiction in advance.
Conflict of laws
Courts apply the law of the country or jurisdiction that has the closest relationship to the transaction
Include law clauses in contracts. Often used in conjunction with the forum selection agreement
Enforcement of foreign judgement
Winning party can obtain judgement for damages
Commercial disputes with nations
Sovereign immunity