The contract with a foreign business partner – what Polish company has to pay attention to? – Part 2
„Clear and coherent contract with foreign counterparty is the key to success” – truism or the most urgent issue for Polish companies? The authors’ practise regarding legal advice indicates, that polish entrepreneurs conclude contracts with foreign counterparties on grave adverse conditions for its legal position. We present hereafter the most common mistakes that Polish companies make by conducting foreign contracts.
“7 deadly sins” are:
4. Lack of proper security of payments
Polish entrepreneurs do not impose their conditions of payments by using clauses providing security of receiving payments for foreign service or product, which has been sent aboard. There are multiple simple legal instruments, which (in case of being included in the contract) could be surely recognized by foreign companies as standard solutions, acceptable in those situations. Various forms and types of international security considering commercial contracts represent so spacious thoughts, that authors decided to discuss them in a separate article.
– The contract with a foreign contractor – what Polish company has to pay attention to?
„Clear and coherent contract with foreign counterparty is the key to success” – truism or the most urgent issue for Polish companies? The authors’ practise regarding legal advice indicates, that polish entrepreneurs conclude contracts with foreign counterparties on grave adverse conditions for its legal position. We present hereafter the most common mistakes that Polish companies make by conducting foreign contracts.
“7 deadly sins” are:
1. Discrepancy of various language versions
Parties coming from various legal jurisdictions often use different language versions of the contract. Those language versions are different, when it comes to used terminology. Parties do not clearly indicate, which of them is the most significant. It concerns in particular situations, when parties coming not from English-speaking jurisdiction prepare the contract in English language (which is found to be a standard, but this language is still “foreign” for them); it is worth in those cases to be based on a mother language of at least one party.
Controversial article 25 of the Comprehensive Economic and Trade Agreement (CETA)
The goal of CETA regarding to biotechnology is to overcome Canada’s issues with the European Union market called ‘market access issues’.
Canada is the 5th largest producer of GM crops in the world, growing and exporting GM canola, corn, soy and white sugarbeet and Europe has not yet approved all of these same GM crops for human consumption. Taking this into consideration Europe needs to quickly approve GM foods and crops that being exported by Canada. In Poland the public debate has started, since GM food is thought as “worse” than the food produced in a conventional manner.
In addition, the Polish translation of the CETA had to be corrected, since the article 25.2 pt. 2d) which the original form is ‘to engage in regulatory cooperation to minimise adverse trade impacts of regulatory practices related to biotechnology products’ has been mistranslated thereby it had the opposite meaning in Polish.
The information was prepared by Kamil Trzaskoś of KG Legal Polish Law Firm. KG Legal provides specialised legal assistance to IT, Life Science as well as investment processes in Poland and organises networking between Polish and international companies and research centres.
KG Legal advises one of the UK based law firms in a cross border case involving the British client who is going to enforce in Poland the judgement issued by the British court against the Polish national. KG Legal assistance in such cases focuses on:
– finding legal and effective ways for a search and disclosure of debtor’s property in the Polish jurisdiction;
– filing the petition to the Polish bailiff (enforcement agent) for the enforcement of the judgment issued by the foreign court;
– safeguarding the interests of a foreign entity in the course of enforcement proceedings;
– proceedings for a declaration of enforceability of a foreign judgment or acting under the provisions of Brussels I Recast or “bis”.
Controversial article 25 of the Comprehensive Economic and Trade Agreement (CETA)