Enforcement of Rights and Decisions Abroad

 

Rights can be enforced in different ways internationally. It is important to be aware of this at the beginning of a business relationship, or even better, to clarify what should happen if the parties disagree about claims and how these claims can be defended or enforced in the event of disagreements.

 

Therefore, in the absence of an arbitration agreement, claims can be asserted by presenting them to the judge at the competent court. In some cases, this can be done in domestic courts. Under certain circumstances, the claimant may then obtain a positive judgment, which he must enforce against the foreign contracting party because the latter refuses to pay of his own accord. Depending on where, or in which country the contracting party has branches or enforceable assets, it is then necessary to proceed and recognize the national judgment. In the EU area this is relatively easy. Outside the EU it can be difficult or impossible.

 

An alternative to the agreement of national jurisdiction (the usual jurisdiction clause) is an arbitration agreement.