Agreements between companies can be complicated, but they can be even more complex when one of the companies is located in another country. International commercial agreements are often necessary, but may be problematic. There are many differences in the laws governing commercial contracts, especially in different countries. When an agreement is needed, it is best for companies to have the contract drafted and reviewed by an attorney who is experienced in international agreements.

Know Your Requirements

It is vital that you understand what your specific requirements are before entering into an international commercial agreement. Often, companies in other parts of the world work differently than companies in the United States. Simple provisions that you would expect to be included in an agreement may not be there. As long as you know your requirements, you will be able to evaluate the agreement to make sure that it satisfies your needs.


International agreements may be difficult to understand and interpret due to communication problems. Translations can make contract wording strange or it could even create an entirely different meaning than was intended. When questions arise, be sure to find out the precise language and meaning of the contract before signing it. If communication is difficult, consult with a translator.

Understand the Terms

Like any legal contract, international agreements have specific terms and requirements. International contracts can create more complicated legal situations when parties do not fulfill the terms. It is essential to know what your legal options are should the other party fail to provide what they are supposed to. United States laws may not apply and it may be difficult to seek a legal outcome in cases where the other party defaults on the agreement.

Seek Legal Help

Signing an international agreement is not the same as signing a contract with a company located in the United States. For this reason, it is generally advisable to seek legal help before you agree to an international contract. Your attorney will review the contract and will get clarification on any issues which may not be clear. Some changes may be necessary in order to provide your company with better protection should problems occur. Do not sign any contract or agreement until you are certain that it is not harmful to do so. If there are concerns with the contract that cannot be worked out, you may need to consider another company or a different arrangement.


This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding International Commercial Agreements, or any other commercial litigation matters, please feel free to contact Joel E. Sannes at 480.461.5307, or log on to,  or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.