Legal matters in international business
Make sure you document agreements with foreign business partners. This can be done in a contract or quotation. But also in your general terms and conditions. Then the rights and obligations are clear to everyone. When doing business internationally, also take into account rules around product safety and intellectual property.
On this page
Making an international quotation
Are you are going to buy or sell products? Then first you often get or make a quotation. A quotation contains information about:
- the products
- the price
- the transport
Does your customer agree to the quotation and sign it? then you have an agreement.
Read more about an international quotation and what it should contain on KVK.nl.
Record your agreements in a contract
Sometimes a quotation includes all the agreements and conditions. But often it does not. Then you need to draw up a contract. This sets out all the agreements you and your business partner have made. For example, who will be liable for damage during transport. A contract makes clear the rights and duties of both parties. This helps to prevent conflicts and reduces your risk.
See what dealing with a contract entails. And read how to check your foreign business partner, for example, if they conduct business honestly.
Contents of an international contract
In the international contract you describe:
- the product or service
- the price
- acceptance by the customer
- which jurisdiction applies
Consult a lawyer about the exact content of the contract.
Contract with commercial agent or distributor
Are you making arrangements with a commercial agent? If so, set them out in an agency contract. Agreements with a distributor should be set out in a distribution contract.
Include international delivery terms
Clearly set out the delivery terms in your contract. You do this using the ICC Incoterms®2020. If you have been using the ICC Incoterms®2010, you can continue to do so. They remain valid. When using the international delivery conditions ICC Incoterms® 2020 you know:
- who is responsible for arranging transport
- who is responsible for the costs associated with transport
- who bears the risk of damage to or loss of the goods during carriage
Also put the Incoterms® in your contract.
Draw up general conditions
Do you want the same rules to apply to all your offers and contracts? Then draw up general conditions. These are your terms and conditions that apply by default to, for example, payment, delivery time and warranty. Check whether your terms and conditions are also valid for the sale of your product or service in the other country. And arrange for a translation. Send your terms and conditions along with your offer and contract. And refer to them in these documents.
Protect your trademark or copyright
Do you import products made under private label? If so, register your trademark, your brand. This prevents others from abusing your trademark. Private label means that another company makes the products and you then market them under your own brand name. Do you sell your products abroad? Then you can protect the brand name of your own product internationally.
Product requirements and liability
Review the product requirements when exporting and importing. Even when you have inspection certificates. If the product you market is faulty, you are liable for the damage it causes. If you are the liable party, you may face financial claims. Check with your insurer how to keep your risk within acceptable limits. This product liability applies only to importers. Not for commercial agents.
Read how to follow the rules for product safety.
Protect your intellectual property
Are you launching a new or unique product on the international market? To ensure that others do not copy it, you need to protect your intellectual property when exporting.
Comply with the GDPR
If you do business in or with an EU country, supplier or customer, you have to comply with the General Data Protection Regulation. The step-by-step guide will tell you what to do.