国际商务谈判 Chapter 9 International Business Contract Negotiation.pptVIP

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2019-05-27 发布于江西
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国际商务谈判 Chapter 9 International Business Contract Negotiation.ppt

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9.4.3　Applicable law A contract, however well written, cannot cover everything. Problems not covered by the contract are handled by the applicable law. All aspects of the contract are subject to the applicable law: its formation—the target and background of the contract; its validity—the legal enforceability of the rights and duties provided in the contract; its interpretation—what exactly the contract means in case of disputes; and its application—what exactly the parties must do to fulfil their duties under the contract. International business contracts cross national boundaries. How can the two parties concerned select applicable laws? For the Chinese businessmen, the fifth article of “The Foreign Economic Contract Law of the People′s Republic of China”promulgated in March, 1985 expressly prescribes that “the contract principal can select the applicable law in case of disputes. If he or it has not done so, the law of the country which is most closely related to the contract shall apply? ”. Hence, the Chinese businessmen can negotiate with foreign parties and select a suitable applicable law on this basis. Keep in mind that the choice of law may be limited to the laws of the importing or exporting country. In some countries, all contracts with their nationals must be subject to their laws. Thus, one may find that the contract clause will not be controlled, and unless one has made an express protective provision, one may even find the entire contract void. It is best to specify which international or national law one would like to have applied in determining the rights and obligations of the parties. * * ① Does one have a right to cancel the contract? Does the seller(buyer) have the same right? ② Does a reason have to be given for cancellation? ③ By what procedure may one exercise the cancellation right? 9.4　Settlement of disputes When nonperformance is likely, or does occur, and there is no provision in the contract for failure of performance, one party