International trade relations, are de jure, mostly more complex than national trade transactions because they have points of contact to several law systems.
Therefore, the initial question is, which law applies or should apply. Due to the lack of agreements, the so-called UN Sales Convention (CISG) is applied in most cases. The UN Sales Convention is an internationally unified sales law that is applicable upon the sale of products between commercial traders from different countries, without having an explicit agreement. As the UN Sales Convention deviates both from Croatian and German trade laws, before agreeing on such a contract, the parties should at least know of the discrepancies between CISG and the national laws.
Besides the applicable laws the following points, amongst others should be considered when engaging into international trade relations:
- Payment and delivery terms
- INCOTERMS Inclusion/Application
- Guarantee rights
- Liability limitations
- Securities ( bank guarantee, documentary collections, letter of credit)
The specification, which Court has jurisdiction in case of a disagreement between the parties should not be neglected. In international supply agreements there are often arbitration court agreements, even though often the contract partners are not aware how (costs, place, length of time) arbitrational proceedings work.
With our experience in negotiating international supply contracts between contract parties from Germany and Croatia, and also in representation at arbitrational proceedings, our experts are at your command.