Commercial disputes with new trading partners often arise due to a failure to draft a contract that accurately reflects the type of business between the two parties and clearly sets out the expectations for both parties. Frequently an existing contract is not reviewed or is briefly reviewed and slightly modified for the new business deal. A key issue before beginning a new business relationship is to ensure that absolutely all aspects of the service or product to be provided are fully understood and a contract is drafted that reflects this and protects the business from misunderstandings, the consequences of a breakdown of the supply or service and also protects against faulty goods or service. If the terms of your contract with your supplier have been breached by shoddy goods or services impact on your customers, you will have recourse if the contract has been drafted clearly setting out the terms of business.
Your reputation in your industry sector can be easily lost if a trading partner fails to deliver the expected level of service which then has a knock-on effect on your business performance. Any new business relationship must be objectively scrutinized for any potential risks arising from any source. The contract should incorporate robust safeguards to protect the business, including a jurisdiction clause that designates which court and jurisdiction that any litigation, should it arise, is conducted. By incorporating such a clause there will be no surprises if you find yourself facing a contentious position. It is particularly important if you are working with a trading partner operating from a country that is new to you or if you are unfamiliar with the business practices, laws and compliance issues in the country in which you are doing business. In the worst case, should litigation be inevitable, you could find that litigation is commenced by the other party in a jurisdiction that not only requires the additional costs of instructing overseas lawyers, the costs of translating all the supporting documentation by accredited translators but also, even if you are successful, enforcement of the judgment is exceptionally difficult.
Giambrone & Partners' corporate and commercial lawyers have extensive experience with European cross-border business disputes, with offices across Europe our lawyers' cultural knowledge of many EU jurisdictions considerably assists in closing down disputes at an early stage and also when negotiating out of court settlements. Our lawyers strongly recommend thorough preparation to protect every aspect of the business when embarking on a new collaboration enabling the business to respond to unexpected contingencies. If a potential problem is discovered hoping to be able to manage the issue once the trading relationship has started is not recommended. Raising an issue before business takes place is far better, even if it means that the collaboration is abandoned.
Businesses that recognise key risks and opportunities have a far greater chance of riding out the present difficulties. Your business survival is only as good as your business strategies and your level of foresight to protect against risks. Our lawyers can assist in bringing a fresh perspective to safeguarding your business and provide guidance and advice on limiting and resolving a dispute.
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