Agreements in International Trade in General

In international trade, parties operate in an environment with different applicable sets of rules and customs, and different cultures and values. This leads to uncertainty, which the parties strive to regulate e.g. through written agreements. Agreements are an excellent tool for regulating the parties’ expectations, promises, quality and risks. Almost invariably, international trade is based on written documents, subsequent to preceding negotiations.

As a rule, the parties can define the terms and conditions of their transaction as and in the form they wish. Naturally, the object and duration of the agreement, and the applicable law, will have an effect on how detailed an agreement must to be drafted. In case the agreement is silent on a particular detail, the matter will be solved in accordance with the applicable law. The following sections concentrate mainly in the specific features of agreements for international sale of goods.