OTHER COMMERCIAL CLAUSES FOR YOUR CONTRACTS

TCM has previously highlighted three essential commercial clauses for protecting yourself against the recurring problem of unpaid debts. Now, we’re presenting three other important clauses that you should include in your commercial contracts in order to help you recover your receivables in the event of late payment.

• Clause limiting the right of objection

With this clause, you will limit the period during which the client will be able to issue objections regarding your product or service. This clause can prove very useful, as some clients make complaints solely with the aim of delaying payment.

• Arbitration clause

The arbitration clause is a contractual clause which, when inserted in a contract, excludes the authority of the judicial courts in the event of any dispute. The parties then undertake to entrust the dispute’s resolution to a neutral, independent and impartial arbitrator. This clause is used regularly in specialist business sectors where the intervention of an arbitrator can prove more effective and appropriate than that of a state court.

• Jurisdiction clause

By default, in the event of a dispute, the competent court will be that of the defendant’s place of domicile. Regularly used, it is particularly useful in sectors such as international commerce. According to the Brussels European Regulation 1, in the context of sales of goods, the competent court will be that of the place where the goods were or should have been delivered under the contract. However, the jurisdiction clause permits the stipulation in the contract of the court which will have jurisdiction in the event of problems or breach of contract by either party. This clause is often twinned with another defining the legislation that will apply in the event of any dispute.If you would like more details on what we can do for you, then feel free to contact TCM. Visit our website or send us an e-mail.

OTHER COMMERCIAL CLAUSES FOR YOUR CONTRACTS

TCM has previously highlighted three essential commercial clauses for protecting yourself against the recurring problem of unpaid debts. Now, we’re presenting three other important clauses that you should include in your commercial contracts in order to help you recover your receivables in the event of late payment.

• Clause limiting the right of objection

With this clause, you will limit the period during which the client will be able to issue objections regarding your product or service. This clause can prove very useful, as some clients make complaints solely with the aim of delaying payment.

• Arbitration clause

The arbitration clause is a contractual clause which, when inserted in a contract, excludes the authority of the judicial courts in the event of any dispute. The parties then undertake to entrust the dispute’s resolution to a neutral, independent and impartial arbitrator. This clause is used regularly in specialist business sectors where the intervention of an arbitrator can prove more effective and appropriate than that of a state court.

• Jurisdiction clause

By default, in the event of a dispute, the competent court will be that of the defendant’s place of domicile. Regularly used, it is particularly useful in sectors such as international commerce. According to the Brussels European Regulation 1, in the context of sales of goods, the competent court will be that of the place where the goods were or should have been delivered under the contract. However, the jurisdiction clause permits the stipulation in the contract of the court which will have jurisdiction in the event of problems or breach of contract by either party. This clause is often twinned with another defining the legislation that will apply in the event of any dispute.If you would like more details on what we can do for you, then feel free to contact TCM. Visit our website or send us an e-mail.