Prevention and the choice of applicable law
STUDENT PAPER
By Alicia Maud Andreani
SKEMA Business School
Lille, France
ABSTRACT
Regarding international contract, the question about applicable law raises number of concerns. It may be hard to decide when entering a contract and lead to conflicts at the earliest stage. But most importantly, overlooked appropriate clauses would considerably complicate the resolution of disputes and strongly impact parties in the event of a dispute. This paper aims to give parties involved in an international transaction the key points in order to protect as much their interests as possible. We will highlight that it is preferable to take preventative measures and involve more time and effort to establish the contract with clear clauses. Take this time may save parties time in the future.
Key words: conflict of laws, contractual freedom, applicable law, forum selection, international conventions, cross-border contractual arrangement, dispute resolution processes
INTRODUCTION
“You should always look for constructive ways of resolving disputes that save time and money and minimize damage to important relationships.”[1]
Time and money are two essential components for most organizations that are looking for benefits through their activities.
This is a much more significant matter regarding international commercial contract and the settlement of disputes.
Let’s take the internationally known coffee company Starbucks as an example to get a clearer understanding of the purpose. As a global company and regarding the Guild of Project Controls Compendium definition of project portfolio: “A portfolio of projects is no different than any investment portfolio, the objective being to minimize the risk and maximize the return. Any organization, be it Owner or Contractor has a portfolio of assets (resources) available to dedicate to projects, with the objective being to develop the best “mix” of projects which will generate the most favourable return on those assets.”[2], Starbucks is running its business managing number of different projects which encompasses an efficient management of its portfolio of assets in order to meet customers’ expectations and fit the global environment.
Looking closely:
More…
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Editor’s note: Student papers are authored by graduate or undergraduate students based on coursework at accredited universities or training programs. This paper was prepared as a deliverable for the course “International Contract Management” facilitated by Dr Paul D. Giammalvo of PT Mitratata Citragraha, Jakarta, Indonesia as an Adjunct Professor under contract to SKEMA Business School for the program Master of Science in Project and Programme Management and Business Development. http://www.skema.edu/programmes/masters-of-science. For more information on this global program (Lille and Paris in France; Belo Horizonte in Brazil), contact Dr Paul Gardiner, Global Programme Director paul.gardiner@skema.edu.
How to cite this paper: Andreani, A.M. (2019). Securing companies’ interests in international commercial contracts: Prevention and the choice of applicable law, PM World Journal, Vol. VIII, Issue VI, July. Available online at https://pmworldlibrary.net/wp-content/uploads/2019/07/pmwj83-Jul2019-Andreani-security-companies-interst-in-international-commercial-contracts.pdf
About the Author
Alicia Maud Andreani
Lille, France
Alicia Maud Andreani is a 23 years old PGE student from SKEMA Business School, currently enrolled in Msc Project and Program Management and Business Develpment in Lille, France. This specialization brings her strong knowledge in methodology, planning and management of stakeholders.
She graduated from Nice Sophia-Antipolis University where she received her Bachelor of Science degree in mathematics with honours, before joining SKEMA. She spent a six-months exchange semester in Raleigh, North Carolina (USA), which, along with her professional experiences in different sectors, allowed her to develop her adaptability to different environments. She is currently looking for a six-month internship as business developer and would also like to experience business consulting.
She speaks French and English and is learning Chinese. She is certified in both PRINCE2 and AgilePM Foundation.
Alicia can be contacted at alicia.andreani@skema.edu or via her LinkedIn profile at https://www.linkedin.com/in/alicia-andreani-52555b142/
[1] Resolving disputes from other businesses – Retrieved from https://www.business.qld.gov.au/running-business/marketing-sales/managing-relationships/resolving-disputes
[2] Portfolio of projects – Retrieved from http://www.planningplanet.com/guild/gpccar/introduction-to-managing-project-controls
