Export, foreign supply contracts, payment protection, import

Cross-border deliveries or the provision of services abroad require special contractual regulations. Two legal cultures meet in such transactions. German companies are exposed to risks in foreign trade that they are unable to assess without expert advice. Without jurisdiction or arbitration agreements, it is virtually impossible to collect outstanding receivables in many countries. If the exporter accepts the validity of foreign legal systems for the contractual relationship, he enters into legal risks of which he is unaware. In individual cases, this can mean liability for punitive damages amounting to three times the damage incurred or, for example, warranty periods that are determined by courts retrospectively in individual cases and cannot be estimated in advance.

In many cases, the granting of payment terms or delivery on account abroad is tantamount to a waiver of the corresponding claim amounts. Foreign deliveries must therefore be secured by effective collateral such as letters of credit. The German retention of title usually has no effect abroad and it is deceptive to rely on it.

The same applies to the import of goods or services: if the delivery or service turns out to be defective, it is difficult or even impossible to pursue the customer's claims abroad without a well-drafted contract. Here, choice of law clauses and good jurisdiction or arbitration agreements protect against damage.

VOELKER advises on the drafting and negotiation of export and import contracts, also in English and other languages, gladly in cooperation with the company's bank.