
International Contracting

We face the legal challenges that globalization imposes on us
INTERNATIONAL SALE OF GOODS AGREEMENT

This is arguably the most prevalent type of international commercial contract for the purchase and sale of goods between companies whose principal places of business are located in different States. Under this agreement, one party (the Seller) undertakes to deliver the goods to the other party (the Buyer), who, in turn, guarantees payment of an agreed price. This contract governs aspects such as the quality of the goods, terms of delivery, payment methods, and warranties. A key element in these contracts are the Incoterms (International Commercial Terms), which are predefined international trade terms that clearly determine the responsibilities of each party in the process of transportation and delivery of the goods.
INTERNATIONAL DISTRIBUTION AGREEMENT

This is another of the most well-known examples of an international contract. In this case, it is used when a company (the distributor) commits to marketing and selling products for another company (the supplier) in a foreign market. This agreement regulates aspects such as the distribution territory, promotion and sales obligations, and purchase conditions and exclusivity. Distribution contracts are essential for companies seeking to expand their presence in international markets without having to establish a direct physical presence, thanks to an intermediary (the distributor).
FRANCHISE AGREEMENT

In this type of international contracting, a company (the franchisor) grants another (the franchisee) the right to operate a business under its brand and following its business model. This agreement stipulates the franchisee's obligations in terms of operation, the royalties they must pay, and the support they will receive from the franchisor. Franchises are an effective form of internationalization for companies that wish to maintain strict control over the quality and consistency of their brand in foreign markets. Many examples of successful international franchise contracts stand out worldwide in the restaurant industry, such as McDonald’s, KFC, or Burger King.
LICENSE AGREEMENT

In an international commercial license agreement, one company grants another (the licensee) the right to use its intellectual property (such as patents, trademarks, or technologies) in a foreign country. This agreement regulates aspects such as the scope of the license, the royalties the licensee must pay, and the terms of use. License agreements are prominent in technology transfer and for the leveraging of recognized brands in international markets.
JOINT VENTURE AGREEMENT

Continuing with the examples of international contracts, we find the joint venture, a strategic alliance between two or more companies from different countries that partner to carry out a specific project. This agreement defines each party's contributions, the distribution of profits and losses, the project's management, and the mechanisms for resolving disputes. Joint ventures are common in industries that require large capital investments, such as construction and energy, allowing companies to share risks and resources.
INTERNATIONAL AGENCY AGREEMENT

The international agency contract is an agreement through which one party (the principal) designates a natural or legal person (the agent) to act as an independent intermediary in the promotion of foreign trade operations. The agent is responsible for advancing and facilitating business on behalf of the principal, but does not assume the risk of the commercial operations they promote. The agent's compensation is typically a commission based on the sales or commercial activities they manage to foster. This type of international commercial contract is particularly valuable because the agent possesses the local knowledge and connections necessary to develop successful business. As the global economy continues to evolve, international contracting will remain a vital tool for strengthening solid and optimal commercial relationships in negotiations between countries.
