International Contracts Blog

Arbitration in China

Each day more often, enterprises all around the world want to work and build commercial relationships with other companies in China. Doing Business relationships, disputes may sometimes arise. One way to solve out these possible conflicts is arbitration. Do you know the keys on how it works in China?

First of all, we have to know that a dispute can only be submitted to arbitration when the underlying contract or a separate agreement expressly provides that disputes will be settled through arbitration. Under Chinese law, a valid arbitration agreement or clause must display a clear intention that arbitration be used and specify the exact arbitration body agreed by the parties. In the absence of a specific arbitration clause, the dispute will be settled by Chinese courts or other competent courts.

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International Contracts Blog

Language Clause in International Contracts

When the parties of an international contract use different languages a language clause should be included in the contract. Even if the parties adopt as the only language one in particular, there must be a clause specifying which version of the document is the official one.

Moreover, it should be mentioned that when there are two language versions of a contract, either because they are required by the law of one of the countries of the parties or because the parties feel more secure about their rights and obligations, it is advisable to insert a clause specifying which language prevails over the other in case of differences among the parties. It is also important to specify which language to use for notifications, especially in long-term contracts.

While the choice of language is free-except in some cases, for example, when the law of a country forced to draft the contract in its language to protect its interests- will depend on many factors, such as the language used most often in the activity sector of the parties. It is important to choose the same language of the applicable law and the Court that will have to resolve disputes between the parties. If the contract is subject to the same language as the law that is applicable as well as the language of the Court that should resolve potential disputes either in Arbitration or in Court, and will save many problems and costs.

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International Contracts Blog

Guide to International Business Location Costs

In most industries today, companies have to operate internationally to stay successful and grow. This guide made by KPMG (the consulting and tax company) contains valuable information for any company locating international business operations.

Based in all regions of the globe, this guide offers locally relevant, industry-specific knowledge that can help support expansion and relocation decisions.

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International Contracts Blog

India Investment Guide

India permits 100% foreign equity in most industries. Companies setting up in export-processing zones or special economic zones, operating in electronic-hardware or software-technology parks, or operating as 100% export-oriented units also may be fully foreign owned.

Foreign direct investment (FDI) in India is approved through two routes: automatic and government approval. The automatic route is the simplest for foreign investors since companies do not need permission from the government or the Reserve Bank of India (RBI), the central bank, before investing, and documents need only be submitted ex post facto to the RBI.

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