- Negotiating and executing multi-jurisdictional, or cross-border, transactions has become an essential and recurring aspect of doing business. Operating companies compete in multiple markets and source critical know-how, supplies and manufacturing capabilities on a worldwide basis. Financial markets continue to increase in interdependence and connectivity. Investors are no longer looking only to opportunities in their part of the world. Thus, many transactions include at least some international aspect and it is important to consider the unique aspects of any transaction involving multiple jurisdictions.
- There are many unique issues raised by cross border transactions. However, the bottom line for the business person and the business lawyer advising her is that doing cross-border transactions, particularly in countries with less developed legal systems, requires more focus on the business objectives of the transaction and a different approach to risk management. Uncertainties related to the content of local law, the ability to execute all aspects of the transactions and to enforce the contract often result in more complicated cost/benefit analysis and risk assessments. At the end of the day, when faced with multiple jurisdictions, languages and legal systems, the focus needs to be on getting the business objective done. A key element of accomplishing this is identifying the risks and obstacles, separating those that matter from those that don’t, and finding solutions for those that need to be fixed. That is the role of the sophisticated business lawyer.
Ch. 24 Dispute Resolution Issues in Drafting Agreements in the International Context
* Not Yet Admitted