Contractual penalties in international contracts
Contractual penalties in international contracts – is it worth introducing them to the contract?
Adam represents a Polish company which is dealing with the distribution of furniture for gastronomic establishments. The company cooperates with many foreign producers. Adam would like to start cooperation with a new producer from France. He contacts with him and starts talks regarding the principles of possible future cooperation. It is going well. The parties are close to concluding a contract.
The French manufacturer sends Adam a document known as General Terms and Conditions and informs him that it applies to all purchase orders carried out by the company in cooperation with distributors.
What does Adam do?
Adam writes back to the future contractor that he understands the use of standard content of documents and is ready to start cooperation on the terms set out in the GTC. He opens the document for a moment, but it is extensive and Adam decides that there is no need to read it in detail, because the conversation went well.
The parties conclude a contract that is very short and contains a reference to the General Terms and Conditions. Adam signs the contract and looks forward to cooperation.
What did Adam not know when signing the contract?
Adam was not aware of many things.
Don’t be like Adam. Read the documents sent to you or get a professional legal assessment so that you know about the consequences of a contract that binds you.
Joanna Lubecka
attorney
Contractual penalties in international contracts – is it worth introducing them to the contract?
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