Solving a conflict in international business
Do you have a difference of opinion (conflict) with a foreign business partner, customer, or supplier? And cannot come to an agreement together? There are ways to resolve the dispute without having to go to court.
Make clear agreements
You can help prevent conflicts by making clear agreements in advance. About, for example:
- payment methods for export and import
Record these agreements in a contract, quotation, or your general terms and conditions. Read more about legal matters when doing business abroad.
Find out what caused the dispute
Look at what caused the conflict. Was the delivery late? Was the contract unclear? Sometimes you can resolve a dispute by discussing the problem..
Take cultural differences into account
Learn about the cultural differences between the Netherlands and the country you do business with. This can help you avoid misunderstandings.
Request help from the embassy or consulate
You can ask the Dutch embassy or consulate in the country for help. They can put you in touch with the right authorities And they may be able to help you find a solution.
Check whether arbitration or mediation is an option for you
Arbitration is a way to resolve a conflict without going to court. Experts then decide on the conflict. Advantages of arbitration compared to going to court include:
- it is cheaper
- it is less official
- it is usually faster
- arbitration bodies usually have more specialist knowledge than judges
- you choose which arbitration body makes the decision
- you choose which language and which law to use
- the award is often easier to enforce
This procedure is usually faster than legal proceedings. The experts are usually more specialised than judges. You designate an arbitral tribunal in an arbitration clause in your contract.
When you choose mediation, an independent mediator helps to resolve the dispute. You choose this option together with the other party in the conflict. Even when a case has already been brought to court, you can still choose mediation.
Arbitration through special organisations
In many countries, organisations such as the International Chamber of Commerce (ICC) offer arbitration. Countries often have their own arbitration laws. So, familiarise yourself with the rules of the country where you are doing business.
Arbitration clause in a contract
You can put an arbitration clause in a contract. This states that in the event of a dispute, you and your business partner will go to an arbitrator and not to court. You agree on this in advance. You can then also appoint a national or international arbitration organisation. This will then rule in the event of a dispute.
Do you use the International Chamber of Commerce's standard model contract? Then it is a good idea to name the ICC as the arbitration body in it.
Check if you can get your money back
When products or services are not delivered as agreed, you probably want your money back. A special European procedure makes it easier to seize a bank account in another member state. This is called a European Account Preservation Order. This often gets your money back faster than through the other procedures.
Start legal proceedings
Do you want to start legal proceedings? Look for a lawyer who is specialised in international law. It is important to know whether Dutch or foreign law applies. This is usually included In the contract with your customer, supplier, or business partner.
The process can sometimes take a long time. In addition, legal proceedings are not cheap. Should you have a conflict with a supplier in the European Union, read about your options here.