INTERNATIONAL TRANSACTIONS

International Legal Disputes

International Legal Disputes

Introduction

Nations in the world manage and control their business with the national laws that have been laid down by the government of every nation. While national law is the law of a particular nation, international law is the law of nations. It consists of set of rules and guidelines, which enable different states to develop and maintain business relationship with each other.

Over the years, due to globalization and increase in industrialization, international law has gained popularity in many nations of the world. The international law has witnessed great impetus in the present scenario than ever before. In short, international law control and determine the legal environment of business. International law focuses on how and when to produce, taxes and employee protection, and resolution of disputes in international transactions.



Discussion

Issues in resolving legal disputes

In any international transactions, business organizations may fall into disputes with other organizations. There are many methods, through which legal issues can be solved. While resolving international disputes, organization may face problems that need to be solved. These issues are discussed below:

Conflict of laws

Conflict of laws is basically concerned with civil and commercial law. It does not deal with criminal and administrative matters. The conflict of laws consists of certain rules and guidelines that have evolved from the traditional rules applicable on international business and is used to resolve the issues between the laws of two different states. In this process, the jurisdictions of one country apply the law to a different jurisdiction arising from family, tort or contract. These laws are applicable in three different areas

The jurisdiction of the court, its competence to hear and make decisions about a case.

The laws, that governs the relationship between two people and the guidelines that are applicable to the case.

Jurisdiction issues

When two countries contract with each other and sign an agreement to increase their business globally, it is quite evident that issues and problems might arise in both of them. Both countries might dispute over the fact that which country jurisdiction should be applied and which country's law will be applicable. There have been many cases in international business, where countries and organization have had issues over certain things and jurisdiction issues have been a concern for both of them.



Practical consideration of taking legal action

As we are of the fact that if tow organizations from different nations, bind together for international business, disputes may arise. While resolving a dispute, both the organization must know whether they can take legal actions against the other. They should be aware in what circumstance they should sue the other organization. Organization must analyze the written agreement between them and should examine the laws and guidelines that have been laid down in the contract.the governing laws will decide what action should be taken in what situations. The foreign firms and the local firms must agree to the terms and conditions before signing the contract. In case, if any one of them violates the contract, legal actions can be taken, which ...