Have you ever thought about the way international contracts are formed and how their structure impacts the way global business is conducted? Standard forms of contracts have become a popular approach for international agreements, especially given the complexities of commerce conducted across borders.
Standard forms are a great way to save costs, but they need modifications in order to comply with different countries laws. In this article, we’ll explore what they are, how they work in various countries and their implications for international business. A standard form contract is a take-it-or-leave-it agreement between two parties that cannot be negotiated. It is also known as an adhesion contract or boilerplate contract and is usually used when there is an unequal power dynamic between the two parties. Such contracts are legally binding agreements requiring one side to do something, with the more powerful side writing the agreement in their own favour.
