A contract is a written or unwritten legal agreement between parties. A contract entails the rights and the responsibilities of the concerned parties involved in the International commercial deal.
Offer
An offer is a crucial component of any international contract according to the International Contract Act, 1950. In any agreement, a party makes an offer to the other parties involved after a thorough. If the parties involved agree to the proposal, then the offer is co0nsidered valid for a contract. The parties accepting the offer have to understand the offer fully and conform to what the person giving the offer expects in the altercation.
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Acceptance
For the contract to be considered valid, the party should accept it. It comes after thorough, in-depth research and understanding its terms and conditions offered. This acceptance can either be verbal or written.
Consideration
For parties engaging in an international contract deal, they have to make several crucial consideration before signing a contract. The parties involved should understand each other fully, have a clear description of the goods and services they are dealing with regarding volume, value and usage.
The parties should also understand the international governing laws to adhere to during their transactions. They should comprehend the official language used during the signing of the contract, and the business transactions process to avoid any language barriers. International businesses have different international taxation rates; the parties should be knowledgeable on taxation methods and standards imposed on their products and services. Another consideration factor is agreeing on the suitable means of solving international disputes in the business in case action needs to be taken
Capacity
For parties to enter into an international contract, they are supposed to be 18 years and above and of sound mind.
Intention to create legal relations
Intention to establish legal ties is vital in an International transaction since in case issues pop up it is used to sift out cases that do not need court intervention and instead looks at the parties’ wishes in the contract or their commercial agreement since a legally binding agreement has to be applied.
In Conclusion, the above discussed Contract Principles are crucial in drafting an International business contract.
Reference
Hamilton, L., & Webster, P. (2015). The international business environment. Oxford University Press, USA.
