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Penny Bygrave, solicitor at Bircham Dyson Bell LLP is warning
businesses in the wake of Kingspan Environmental Limited &
Others v Borealis A/S and Borealis UK Limited, to consider whether
they have clarity on what law governs both contractual and
non-contractual claims in an international contract as other legal
systems may not provide the same protection to them as English
law.
"Agree your governing law and jursidiction for dispute
resolution up front so as to avoid any fall out should
relationships make a turn for the worse," explains Penny
Bygrave.
"Where companies are contracting with UK subsidiaries,
check whether the overall group company, often the parent company,
is based abroad and therefore in another jurisdiction.
"If you must take the other side's jurisdiction,
then taking local law advice is advisable - if things go wrong, you
need to know what procedures must be followed and what the relevant
time frames are.
"Deciding the jurisdiction for dispute resolution often
comes down to the bargaining strength of the parties and will
usually be decided by the place where the contract will be
performed."
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