Imagine you enter a contract with a Japanese company, you pay them a bunch of money and they fail to deliver. What do you do? Can you sue them here? Maybe. The answer for more and more businesses is to choose to place an arbitration clause in their agreements before any issues arise.
Businesses in international business disputes often choose arbitration for a number of reasons. Often it is cheaper than the judicial process. There is a perception that arbitration forums are more neutral than the courts of one party or the other. The parties get to select arbitrators, often with expertise in the pertinent business area. Also, the disputes can often be resolved more quickly.
The problem with waiting until a dispute arises before discussing arbitration is by that time, one party may see an advantage to a slower, costlier, biased or less informed process. So, if arbitration is how you would like to have any dispute resolved in your international business contract, make sure to include an arbitration clause in the contract.
The Hance Law Firm, a Minnesota business law firm, has the experience to assist you and your business in international disputes. For a free consultation, please contact Hance Law Firm.