The supplier contract that left out the essentials

An EMIBA client asked me to review a contract with a supplier from another country. My first thought when reading it: it is very general.

An EMIBA client asked me to review a contract with a supplier from another country. My first thought when reading it: it is very general. It had barely 10 clauses and many things were left unspecified. But what struck me most was this: there was no applicable law or jurisdiction clause. Why is that a problem? Because if a dispute arises, nobody has agreed where or under which law it would be resolved. There are fallback rules that end up deciding it, but the outcome is less predictable and arguing over it costs more. It was one of the first things I told my client had to be included. These are clauses that should be in every contract with a party from another country, because they provide greater legal protection. And one more note: trading internationally is not only about selling abroad. It also means buying from a foreign supplier or receiving goods that come from other countries. All of that has to be taken into account. Do you review your suppliers' contracts before signing? 👇