International Business Transactions

By  Norka M. Schell,  Experienced International Business Transaction Attorney, at Law Offices of Norka M. Schell, LLC
www.lawschell.com

International business transactions are described in the form of an international contract, containing the objectives and commitments of each of the parties involved and the terms which govern the transaction. 

International sale contracts are governed by the Uniform Nations Conventions on Contracts for the International Sale of Goods (CISG). If the countries of the parties to the contract have ratified the CISC -- and if the parties have not agreed to some other law will govern their contract-- CISG covers the transaction. 

One key element of international contract law includes the provision that the parties' nationality does not play any role when applying the law, thereby placing all parties on an equal playing field. Rules of the contracts are interpreted by what a "reasonable person" would consider fair and appropriate given the circumstances.

The basic obligation of a seller under a sales contract is to transfer and deliver conforming goods -- that is goods that conform to the specifications of the contract.

The basic obligation of a buyer is to accept and pay for conforming goods in accordance with the contract. 

When either the seller or the buyer fails to perform his or her obligation under the contract,for instance, the failure to supply goods or to perform a service or to make payment as agreed upon, a breach of contract occurs. To protect the innocent party, the law allows the nonbreaching party to bring an action for damages to compensate for the loss of the bargain.


The object of damages is usually to put the nonbreaching party in position that he or she would have occupied had the contract been fully performed.  Sometimes damages are not an adequate remedy and this is where the equitable remedies (such as specific performance and injunction) may be awarded. However, the nonbreaching party has an obligation to mitigate the damages incurred as a result of the contract's breach. 


For more information about International Business Transactions, please call my offices at (212)564 1589 to speak with me.