Lawyer Advise On International Sales Contract Disputes

According to globalized economy, international sales contracts play a crucial role in connecting businesses and merchants from various countries. However, managing and executing international contracts is not always smooth, and disputes between parties are inevitable. This article,  Apolo Lawyers - Solicitors & Litigators (Tel: (+84) 903.419.479) will explores the aspects of international sales contract disputes and introduces legal consulting services, particularly according to Vietnamese law.

1. International Sales Contract Disputes

International sales contract disputes occur when there is a disagreement between parties involved in cross-border transactions for goods or services. These disputes may include:

• Breach of Contract Obligations: One party fails to perform or inadequately performs the obligations specified in the contract, such as not delivering goods on time or not meeting the quality requirements.
• Differences in Legal Systems: Different countries have different legal systems, leading to inconsistencies in understanding and enforcing contract terms.
• Communication and Cultural Barriers: Language barriers and cultural differences can cause misunderstandings and conflicts in contract execution.

Lawyer Advise On International Sales Contract Disputes​

2. Common Causes of International Sales Contract Disputes

International sales contract disputes often arise from the following causes:

• Breach of Contract: This is the most common cause of disputes. For instance, if one party fails to deliver goods on time or if the goods do not meet the quality standards of the contract, the other party may seek compensation or remedy foreign merchants rights.
• Differences in Legal Regulations: Different countries have varying legal systems, which can lead to misunderstandings and conflicts regarding how to implement contract terms. For example, a contract clause that is legal in one country might be considered illegal in another.
• Communication and Cultural Barriers: Differences in language, customs, and culture between parties can lead to misunderstandings in contract execution. Parties should be careful in drafting contracts to avoid such issues.

Lawyer Advise On International Sales Contract Disputes​

3. Vietnamese Legal Regulations on International Sales Contract Disputes

In Vietnam, international sales contract disputes are governed by the Civil Code 2015 and international trade agreements that Vietnam participates in. Key regulations include:

• Articles 371 and 372 of the Civil Code 2015: These provisions outline the rights and obligations of parties in a contract and the remedies available for breaches. Article 371 addresses contract performance obligations, while Article 372 provides remedies for breaches.
• International Trade Agreements: Vietnam is a party to various international trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA). These agreements may affect how international sales contract disputes are resolved and provide additional legal frameworks.
• Commercial Arbitration Law: This law governs the process and procedures for resolving disputes through arbitration. Arbitration can be conducted according to international arbitration rules or domestic regulations, depending on the agreement of the parties.

Lawyer Advise On International Sales Contract Disputes​

4. Methods for Resolving Disputes

When disputes arise, parties can choose from several methods to resolve the issue:

• Negotiation: This is the first method parties should attempt. Negotiation allows parties to reach an agreement without third-party intervention. Effective negotiation requires transparency, sincerity, and mutual understanding.
• Mediation: If negotiation fails, parties can seek mediation. Mediation involves a neutral third party assisting in finding a solution and reaching an agreement. Mediation can be conducted according to legal regulations or international mediation rules.
• Arbitration: Disputes can be resolved through arbitration, where parties submit a request for arbitration and receive a decision from an arbitrator. Arbitration can be conducted according to international or domestic arbitration rules, depending on the agreement of the parties. Arbitration offers the advantage of a quicker process, and arbitration decisions can be enforced in many countries.
• Court: If other methods fail, the dispute can be brought to a court with jurisdiction. The court decision will have legal effect, and parties must comply. The court may adjudicate according to national laws or international laws if agreed upon by the parties.

5. Legal Consulting Services for International Sales Contract Disputes

Legal consulting services are crucial for protecting the rights and interests of parties involved in international sales contract disputes. Legal professionals can provide the following services:

• Contract Analysis and Review: Lawyers will review the contract to assess legality and potential risks, providing recommendations for contract adjustments to protect clients rights and minimize risks.
• Consultation and Representation in Negotiation and Mediation: Lawyers will advise and represent clients during negotiation and mediation processes, helping to reach agreements and find suitable solutions to resolve disputes effectively.
• Dispute Resolution through Arbitration or Court: If disputes cannot be resolved through negotiation or mediation, lawyers will assist clients in filing requests for arbitration or lawsuits in court. They will ensure that the dispute resolution process follows regulations and help clients achieve desired outcomes.

Apolo Lawyers is a legal consulting service provider with a team of high quality and professional lawyers and litigation attorneys, ensuring to provide customers with a full package of legal services. For more detailed information, please contact:

Apolo Lawyers - Solicitors & Litigators

Address: No 108 Tran Dinh Xu Street, Nguyen Cu Trinh Ward, District 1, Ho Chi Minh City

Tel: (+84) 28 66.701.709 / (+84) 28 35.059.349

Mobile & WhatsApp 1: (+84) 939.486.086 / Mobile & WhatsApp 2: (+84) 908.043.086

Email: contact@apolo.com.vn

Website: www.apolo.com.vn

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