When dealing with international contracts that may span over many different jurisdictions, it is vitally important to understand whether the contract is legally enforceable. Under the court of law, there are instances where the court will not uphold and enforce your contract.
For instance, valid legal contracts assume that all parties entering into the original contact are legally competent. In other words, the relevant parties in the contract need to have the mental capacity to understand and assume responsibility for the actions and decisions outlined in the contract.
If a person cannot understand the language or legal writing under which the legal contract was originally agreed upon, the court may later rule that the person lacked the mental contract. The court may then decide to not enforce the contract—regardless of whether or not the contract was signed.
What is a Breach of Contract?
The reason international contracts need to be enforceable under the court of law is because of the inevitably possibility of a breach of contract. A breach of contract is when one or more of the relevant parties does not follow the agreement.
When international contracts experience a breach of contract, victims of an enforceable contract may find compensation and relief in courts. Contract lawyers and judges will be able to take all factors into consideration to mandate a fair solution.
Illegal International Contracts
International contracts may also unenforceable if the agreement is deemed illegal. By definition, illegal contracts are agreements that specify prohibited goods or services or mandates the use of illegal activities in order to fulfill the terms.
For instance, if the contract requires a certain practice that is legal in one party's country but illegal in the other's country, the court may establish illegality. As such, these illegal contracts will not be upheld in the court of law. In that sense, it is of utmost importance to seek an experienced lawyer before signing any international contract.
There are many cases of businessmen unintentionally involving themselves with illegal contracts. With the way laws changes in many different countries, it is natural that some businessmen overlook important details.
What Happens If Laws Change, and My Contract is Now Illegal?
Even if a contract is completely legal when the original agreement was made, the international contract is still not guaranteed to be enforceable. Instances where subsequent changing laws may compromise the original agreement, forcing the parties to abandon the contract.
Discussions on a contract's legality, enforceability, and other relevant matters is ultimately a conversation best had with your attorney. He or she will be able to guide you on the best steps to make sure your contract is enforceable in an ever-changing legal field.
This is a legal blog. It is not intended to be used as legal advice.
For further information please contact the law offices of attorney Ramona Kennedy.
Ramona Kennedy (Attorney) received her Jurisprudence Doctorate in America and is a licensed attorney in California (USA). Ramona Kennedy is a member of Orange County Trial Lawyers Association (OCTA).
Ramona Kennedy is fluent in English and Farsi (reading & writing) & speaks Azeri Turkish.
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