Course 7: Export Legal Considerations

Module 2: International Contracts

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The module starts with a pre-assessment to help determine your baseline understanding of international contracts. Once the pre-assessment is completed the module provides context on the part contracts play in commercial transactions. This context is elaborated on by an explanation of the terms ‘right to contract’ or ‘capacity to contract’. This is followed by a breakdown of the differences between an offer, counter offer and the acceptance of an offer. Which is the first step in understanding how international contracts work. 

The module continues with a summary on identifying what makes an international contract valid. This includes why a contract in its final form must be both ‘legal’ and ‘possible’. A concept that segway’s perfectly into identifying the additional country-specific conditions that are applicable in the formation of an international contract. This section is of particular importance because it provides an international context to trade contracts. 

Understanding international contracts is also vital in reducing your organisation’s capacity for error and the associated risks involved. Inadequate contracts will always result in disputes and even legal action in some cases. A scenario you want to avoid at all cost, as the legal route usually results in unforeseen costs, which will negatively affect your cash flow as an export business.

The following section highlights the conclusion of an international contract, which includes the various ways in which a contract can be fulfilled or brought to an end. Once the conclusion of a contract is covered, the next step is to understand the various circumstances that result in a breach of contract, and how a potential breach of contract can be resolved. 

The module rounds off with a breakdown of the various contractual relationships that apply to International Trade. These include the various parties involved in a typical trade transaction and the various contracts required to enter into the agreement with every party involved. These can vary from banks and insurers, to transport services and even government.

This free module is part of a comprehensive course covering the essentials of the International Legal Environment. A particularly complex part of international trade, which requires international legal proficiency from all parties involved. Understanding international contracts is also vital in reducing your organisation’s capacity for error and the associated risks involved. Inadequate contracts will always result in disputes and even legal action in some cases. A scenario you want to avoid at all cost, as the legal route usually results in unforeseen costs, which will negatively affect your cash flow as an export business. Assuming you have completed the export foundational training, this module serves to improve your knowledge and proficiency of international contracts within the international legal environment. 

In the following modules we will be going into detail on the topics of a contract of sale or purchase, contracts of agency and distributorship, and contracts for the carriage of goods internationally. International Trade is a legal minefield when you consider all the countries and cultures involved in a typical export transaction. By completing these modules, your fundamental understanding of all aspects of export legal considerations will improve immensely. Empowering yourself and your business to take on the legal challenges posed by the International Environment.