How can sales contracts be adapted for international customers?

1 Why adapt your sales contracts?

Your sales contracts are not only legal documents, but also communication tools that reflect your value proposition, your relationship with your customer, and your expectations for the transaction. Therefore, you need to adapt your sales contracts to suit the specific needs, preferences, and norms of your international customers, as well as the requirements of the local laws and regulations. By doing so, you can avoid misunderstandings, disputes, and delays, and build trust and rapport with your customer.

2 How to research your target market?

Before you draft or modify your sales contract, you need to do some research on your target market and customer. You need to understand the cultural, economic, political, and legal factors that affect your customer's decision-making, behavior, and expectations. For example, you need to know how your customer values quality, price, delivery, service, and warranty; how they negotiate and communicate; how they handle disputes and complaints; and how they perceive your brand and reputation. You also need to know the relevant laws and regulations that govern your product or service, such as import duties, taxes, licenses, standards, and compliance.

3 How to choose the governing law and jurisdiction?

One of the most important clauses in your sales contract is the governing law and jurisdiction clause, which determines which country's laws will apply to your contract and which country's courts will have the authority to resolve any disputes. This clause can have a significant impact on your rights and obligations, as well as your costs and risks. Therefore, you need to choose the governing law and jurisdiction carefully, based on factors such as the enforceability of the contract, the fairness and efficiency of the legal system, the availability and cost of arbitration or mediation, and the relationship and trust between you and your customer.

4 How to address currency and payment issues?

Another key clause in your sales contract is the currency and payment clause, which specifies the currency and method of payment, the payment terms and schedule, the interest rate and penalties for late payment, and the allocation of currency exchange risks. You need to address these issues clearly and explicitly, to avoid confusion, delays, or disputes over payment. You also need to consider the currency fluctuations, inflation rates, exchange controls, banking fees, and payment security in your target market, and negotiate a fair and reasonable arrangement with your customer.

5 How to deal with delivery and logistics?

Depending on the nature and scope of your product or service, you may also need to include clauses that cover the delivery and logistics aspects of your sales contract. These clauses may include the delivery date and location, the shipping terms and costs, the inspection and acceptance procedures, the title and risk of loss or damage, the insurance and claims, and the force majeure events. You need to deal with these issues in accordance with the international trade terms and practices, such as the Incoterms, and coordinate with your customer and your logistics providers to ensure a smooth and timely delivery.