Development of Foreign Trade (FTE) Contracts

Since 2008, the “First Legal” Law Firm has been providing legal services.

One of the strongest areas of our Law Firm’s activity is foreign economic activity, primarily involving the export and import of goods, capital, and labor; the provision of services (production, transportation, insurance, consulting, marketing, etc.) by Ukrainian foreign economic actors to foreign businesses; leasing operations, and so on.

Clearly, the performance of each type of foreign economic activity requires a foreign trade contract, properly drawn up and signed by authorized representatives of its parties (hereinafter referred to as the contract).

Although Ukrainian legislation allows foreign economic entities to conclude a contract by correspondence, including by email, our specialists always emphasize the benefits of concluding it in writing as a single document for the following reasons:

1. Clarity of Contract Subject Matter
   The parties to the contract avoid any disorientation regarding what exactly constitutes the subject matter. For instance, where goods are being supplied, the written contract contains comprehensive information about the product name, its specifications (brand/color/size, etc.), quantity, units of measurement, and more.
   
2. Price and Payment Terms
   By establishing the contract price and the terms of payment between the parties, the supplier is assured of receiving payment for the goods and/or services and/or works within the deadlines set by the contract or, in the event the buyer (customer) is late in making such payment (in full), of recovering the outstanding debt and imposing penalties against the liable party in the event of a dispute. Moreover, speaking of the advantages of a written contract form for the buyer (customer), the latter certainly receives a guarantee of obtaining the goods, and/or services, and/or the outcome of performed works within precisely specified deadlines, or may hold a negligent performer accountable in the event of delayed provision.
   
3. Dispute Resolution Clause
   Another crucial aspect is the inclusion in the contract of a dispute resolution procedure in the event of disagreements between the parties for instance, the full name of the arbitral tribunal tasked with resolving disputes, the number of arbitrators, the language of the proceedings, and the name of the country whose substantive and procedural law applies.
   

Hence, thoroughly articulated business cooperation terms that also strictly comply with international treaties, practices, and recommendations save time for our client the foreign economic entity (e.g., an exporter or importer of goods or services) when carrying out the contract’s provisions.

At the same time, it is equally important to adhere to the procedure for concluding the contract in accordance with international law requirements. This entails conducting a proper verification of the signing authority of the prospective counterparty’s representative, as well as arranging the actual signing of the contract by the authorized representatives of both parties and exchanging copies between them.

Choosing the “First Legal” Law Firm undoubtedly benefits the client, thanks to a strong team of experts in international law and their extensive experience in drafting foreign trade contracts (supplying goods, services, or works) in line with international legal requirements and the client’s needs. We guarantee that once you begin working productively with the “First Legal” Law Firm, you will remain our client for a long time due to our professional approach and the efficient provision of legal services.