International Contracts – New Guidance

by Kidd Rapinet on March 15, 2010

Does your business supply goods abroad or buy from abroad? If so it is worth taking legal advice on the new rules applying to contracts. Since December regulations relating to “choice of law” have applied. In February the Ministry of Justice published guidance on this area too. The EU regulation on which the regulations are based is called Rome I.

Philip Astles, a partner in Kidd Rapinet’s Slough office says:

“Some companies enter into international contracts without considering the impact of accepting laws other than English law. They also agree to disputes being heard in courts abroad or arbitrated abroad. Foreign laws can be very different from English law and all kinds of obligations may be implied into the contract by Civil Codes and legislation in the other country. Always either change the agreement to English law and jurisdiction or take legal advice locally on the implications of the local law chosen. Even if English law is picked for important contracts some local law advice is a good idea as not all countries respect a ‘choice of law’.

“You might also check if your export contracts comply with the latest legislation. For example anyone with distribution contracts in the EU will need to check their compliance with a new EU vertical agreements block exemption regulation due to come into force soon. We can advise you on the full range of international contract issues, export control legislation, distribution and agency agreements and regulation in those areas.”

Call Philip Astles on 01753 532541.

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