LKOS Law Office represented the client before the court in a private international law matter that among other questions included a choice of law dispute. In the case the first essential question the court had to decide was whether in the dispute Finnish law was applicable.
The matter is a good reminder of importance defining the applicable law when international trade relationships are in question. Further, it is of essence to review regularly international trade agreements’ database and highlight potential risks under company’s compliance policies.
The choice of law clause in international trade agreements sometimes is not the main subject parties are aware of or are negotiating about, especially if no professional legal advice is involved. It is understandable that for a seller and a buyer of a trade agreement is more important to negotiate on business related matters than contract law nuances. However, in case parties do not agree on applicable law and jurisdiction, it may lead to several problems in the future, if business relationship between the parties does not work out as planned.
First of all, if there is no choice of law and jurisdiction clause in the agreement, this causes unawareness and cumulates to the parties and lawyers time spent to solve these legal questions. Secondly, clarifying the applicable law cumulates extra legal costs for both parties.
Therefore, we state that small things matter or in other words – lawyer’s review of a draft business agreement may save you a small fortune in legal fees in the future. However, the most important is, that it saves your time, which you are able to spend for things you value the most – development of your business to the next level.
LKOS Law Office regularly advises on international trade matters and provides trade compliance services. LKOS Law Office is a boutique NewLaw business law office.
For further information on this topic please contact LKOS Law Office by email or by telephone (+358 40 6724285). The LKOS Law Office website can be accessed at www.lkoslaw.fi.
Should you wish to hear our latest news directly please follow us on LinkedIn.
*This article is for general information purposes only and does not constitute a legal advice.