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Cross-Border Litigation Issues To Ponder While Making International Transactions

Increasing Globalization has changed the dynamics and scope of international trade. Now, entrepreneurs, business organizations and MNCs work over multiple borders and get involved in cross-border transactions every now and then. You must keep in mind that things may go wrong at any time in international transactions. Therefore, you must prepare for the all possible litigation issues so that you can minimize the risk factor. Here are some main factors:

1. Language Problem

When you make financial transactions with foreign traders, you should use the language which is spoken in your client's country easily. For example- If you are signing a business deal with a client in Russia, you should make the contract paper available to your client in Russian. For this, you can take the help of translators and get the business agreement paper translated into the Russian language. This will help you a lot when you take legal action against the client in the Russian court. You can also use English if you have problems in getting the contract paper ready in the Russian language. English is an international language and is widely used in international business activities.

2. Take Note Of The Basic Points

Before striking a deal with a foreign client, you should not make haste even a little bit and read all terms and conditions of the agreement carefully. If you don't understand any particular rule or regulation, you should ask the foreign delegate to explain that clearly. In cases, you are unfamiliar with the rules and regulations of international trade, it will be better for you to avail the services of international lawyers in India. They can help you understand the complex terms and conditions of international trade in simple language and strike an appropriate deal without facing any problem.

3. Implement Dispute Resolution Clause In Deal

Starting a legal battle against your foreign client is an expensive affair and it wastes lots of your time and energy unnecessarily. Therefore, you should add dispute resolution clause in each and every contract you make with your foreign clients. This will assist you to prevent yourself from landing in several needless legal battles and solve business disputes with your foreign clients through active communication.

4. Problems In The Enforcement Of Judgments

The enforcement of foreign country judgments is also a problem for the people involved in international trade. Although, parties involved in a dispute, can easily challenge the verdict of the court. But, several countries (such as China, the USA, Russia, Iran, etc,) generally don't honor the judgments given by foreign courts. In that case, it becomes very difficult for you to get the justice on time.

5. Privacy Issues

Maintaining the privacy of business deals is also a headache for individuals when they launch legal battles against their foreign partners. To escape yourself from this situation, you should include a confidentiality clause in the main business agreement.

6. Prolonged Legal Battles

When you initiate a legal battle in a foreign country, it is very difficult to get the justice in your favor if you don't present the case rightly with evidence. Your cast may last longer if the rival party gets to stay on the case. To avoid the mess and get your case resolved quickly, you should get the legal consultation services offered by the dispute resolution firms. They can prepare your case very well, explain it to the foreign court rightly as per the local law and get the issue solved within a few hearings. It helps you to save your precious resources and focus on expanding your business easily and quickly.

Final Words:

Disputes are quite common in foreign business dealings. These are some possible scenarios in cross-border transaction wherein disputes surface prominently. Just identify them and try to sort out in an easy way.

Source: https://ahlawatassociates.wordpress.com/2017/12/06/cross-border-litigation-issues/

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