- •Content module 1. Theoretical aspects of international contract activity
- •1.1. International commercial deal and its steps
- •1.2. Contract and international contract
- •1.3. The basic principles of international contract
- •1.1. The international commercial operation and its stages
- •1.2. Contract and international contract
- •1.3. The basic principles of international contract (Vienna Convention)
- •Theme 2. Classifying international contracts
- •2.1. Multicriteria classifying
- •2.2. Classifying on the contract’s subject
- •2.1. Multicriteria classifying
- •2.2. Classifying on the contract’s subject
- •Theme 3. Structure and contents of international contract
- •3.2. The main Contract’s conditions a) Terms of Payment
- •A c.I.F. Price includes apart from the value of the goods the sums paid for insurance and freight (and all other transportation expenses up to the place of destination).
- •C) Force Majeure Circumstances
- •3.3. Form and content of the contract
- •Theme 4. International commercial terms (incoterms) in international contracts
- •4.1. The Incoterms families (e, f, c, d)
- •4.2. The Incoterms categories (the Incoterms of sale at departure; the Incoterms of sale at destination; the daf Incoterms)
- •4.1. The Incoterms families (e, f, c, d)
- •Incoterms 2000 families
- •4.2. The Incoterms categories (the Incoterms of sale at departure; the Incoterms of sale at destination; the daf Incoterms)
- •Content module 2. Algorythm of concluding and execution of international contracts theme 5. Concluding of international contract
- •5.1. The fist stage: Negotiation
- •5.2. Commercial offer
- •6.1. Formation of the sales contract
- •6.2. Required documents when executing a contract: collecting and filling up
- •6.1. Formation of the sales contract
- •6.2. Required documents when executing a contract: collecting and filling up
- •Import/Export Documentation
- •Theme 7. Regulation of international commercial disputes
- •7.2. Applicable law
- •7.3. Competent tribunal
- •7.4. International Commercial Arbitration
- •7.5. Execution of legal and arbitral decisions
- •7.6. Choosing a regulation process
- •Literature і. Основна література
- •Іі. Додаткова література
- •Ііі. Нормативні матеріали мон і ДонНует імені Михайла Туган-Барановського
7.6. Choosing a regulation process
When parties draw up a contract, their purpose is to arrange the way in which they will jointly pursue the economic objective they have set themselves. Difficulties may beset the fulfilment of this objective. This is notably the case when contracts are made for a certain length of time. For instance, agreements that have been made may prove to be imprecise and need clarifying, they may be upset by new circumstances, or the parties may behave badly along the way.
As a first step, taken rationally and in good faith, the parties should weigh up the situation together and mutually agree whether it is possible and appropriate economically to continue the initial project, maybe on a modified basis. If not, they should together determine a suitable way of parting company "on good terms". In seeking such a consensus, the parties may receive technical enlightenment from a specialist or support from a mediator, who may help them to see eye to eye. If the parties are unable to reach agreement, then in practice it is necessary to resort to a third party - judge or arbitrator - characterised by his or her ability to settle the controversy and decide with the authority imparted by such a position. The final decision handed down by the judge or the arbitrator has binding force upon the parties, who have an obligation to carry it out.
As can be seen, there are many ways of settling the various situations (from joint interpretation of the contract to litigation). Within this assortment, the expression "alternative dispute resolution" (ADR) is often used to mean either all methods of resolution other than through courts of law, or the methods that do not resort to a ruling from a third party, whether arbitrator or judge.
Practice shows that several of these methods may be used successively in one and the same dispute and that toing and froing between the different methods is not unusual according to circumstances, the parties' moods, or indeed a truer awareness of the respective strengths and weaknesses of those involved. Hence, it is common for parties to turn to arbitration when attempts to reach a friendly settlement fail and then, enlightened by the arbitral proceedings, to decide to end their dispute by a settlement agreement.
It also helps to reduce the number and the difficulty of disputes if contracts are made to a high standard and then properly performed. Such considerations should be ever present in the minds of negotiators. For businesses, preventing disputes and wisely organising the way they are settled, which is largely in their hands, are crucial to profitability and sometimes even survival.
The foregoing suggests that there is no method of dispute resolution that in itself has unfailing supremacy over all others. It all depends on the circumstances and, above all, the parties' intentions.
This fact should help to guide businesses in determining their legal policy for choosing a method of dispute resolution and should enable negotiators to make the most appropriate practical choices in individual cases.