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Chapter 1Introduction15

1. Scope of this Book15

1.1 The addressees: traders and non-speciALalized lawyers15

1.2 Issues not covered18

2. International and Domestic Contracts Main Differences18

3. The Basic Issues: Applicable Law and Jurisdiction18

3.1 Applicable law19

3.2 Jurisdiction20

3.3 Conclusion20

4. The Central Role of the Contract21

4.1 The various aspects of party autonomy （contractualfreedom）21

4.2 The parties' contractual freedom is not unlimited22

5. The Role of the Lawyer dealing with International Contracts23

6. Main Organizations Active in International Commercial Law24

6.1 The United Nations Commission on International Trade Law （UNCITRAL）24

6.2 The International Chamber of Commerce25

6.3 The International Institute for the Unification of Private Law （UNIDROIT）25

6.4 The Hague Conference on Private International Law26

6.5 Other organizations26

7. The Structure of the Book27

8. The Presentation Method28

Chapter 2The Applicable Law29

1. The Need to distinguish between Applicable Law and Jurisdiction29

2. The Importance of determining the Applicable Law31

3. Two Alternatives: Traditional Approach vs Lex mercatoria33

4.1 The problems arising from the lack of uniformity35

4.2 The Rome Convention of 198037

4.3 Private internationallaw rules and international arbitration37

5. The Law Applicable in the Absence of a Choice by the Parties38

5.1 Which criteria will be used for the determination of the applicable law?39

5.2 The criteria contained in the Rome Convention40

5.3 The main problem for business: lack of predictability42

6. The Choice of the Governing Law43

6.1 The principle of freedom of choice43

6.2 Cases where the freedom of choice is limited44

6.3 Special problems: exclusion of mandatory rules; depecage45

6.4 How to draft the choice of law clause47

7 The Effectiveness of the Choice of the Governing Law48

7.1 “Simply” mandatory rules and “internationally” mandatory rules48

7.2 National laws implementing European directives: the Ingmar case51

7.3 Application of internationally mandatorrrryrules by courts （and arbitrators）53

8. The Direct Application of Transnational Rules56

8.1 The theory of lex mercatoria56

8.2 The UnidroitPrinciples59

8.3 The combination of lex mercatoria and Unidroit Principles66

9. The Options for the Choice of the Governing Law67

9.1 Choice of the law of its own countty67

9.2 Choice of the law of the other party73

9.3 Choice of the law of a third countty74

9.4 Lex mercatoria and similar solutions75

9.5 No choice at all75

Chapter 3The Methods for Solving Disputes77

1. The importance of dispute resolution77

2. The Main Options80

2.1 The choice between arbitration or ordinary jurisdiction80

2.2 Mediation and ADR87

2.3 The ICC ADR rules88

Chapter 4International Arbitration93

1. The Legal Framework93

2. The New york Convention of 195894

2.1 The fundamental principles of the Convention94

2.2 The arbitrability issue96

2.3 Problems arising in connection with public policy99

3. Diffferent Types of Arbitration101

3.1 The distinction between ad hoc and institutional arbitration101

3.2 Arbitration under the Uncitral Rules102

3.3 Institutional arbitration102

4. ICC Arbitration105

4.1 The ICC International Court of Arbitration and the Secretariat105

4.2 The ICC arbitration rules105

4.3 The costs of ICC arbitration110

5. Drafting the Arbitration Clause112

5.1 The formal requuirement of the arbitration clause: agreement in writing113

5.2 The essential elements of an arbitration clause116

5.3 Some typic errors frequently found in arbitration clauses117

5.4 The optional elements of the arbitration clause121

Chapter 5Litigation before Ordinary （National） Courts125

1. International Contracts and National Jurisdiction125

2. The domestic Rules on Jurisdiction126

3. The Rules Applicable in the European Area127

3.1 The rules on international jurisdiction128

3.3 The rules regarding lis pendens137

4. The Hague Convention of 2005 on Choice of Court Agreements139

4.1 Scope of application140

4.2 Exclusive choice of court agreements140

4.3 Recognition and enforcement141

4.4 Conclusions142

5. Strategies for the Appropriate Choice of Jurisdiction142

5.1 Choice of forum in favour of its own courts142

5.3 Drafting choice of forum clauses146

5.4 Formal requirements of jurisdiction clauses148

5.5 Effectiveness of the choice of forum clauses148

Chapter 6Drafting， Negotiating and Concluding International Contracts151

1. Why Negotiate and Draft a Contract?151

1.1 The trend towards self-sufficient contracts152

1.2 Oral and written contracts153

1.3 Letters of intent and similar documents156

2. Preparing for the Negotiation of an International Contract160

2.1 Identifying the legal framework where the contract is to be situated161

2.2 Establishing a draft in view of the negotiation162

3. The Negotiation Stage164

3.1 The approach to negotiation164

3.2 The role of the lawyer in the course of negotiation165

3.3 The recourse to local lawyers166

3.4 Responsibiliay of the parties during negotiation167

3.4 Agreeing upon special rules for negotiation169

4. Drafting the Contract170

4.1 The trend towards common drafting standards170

4.2 The basic requirements of a well-drafted contract171

4.3 Drafting techniques commonly used in international contracts172

4.4 The language of the contract173

5. Clauses frequently used in International Contracts174

5.1 Force majeure175

5.2 Hardship181

5.3 Penalty/liquidated damages184

5.4 Respect of the written form for modifications185

5.5 Partial nullity187

5.6 Non-waiver clauses189

6. Concluding the Contract190

6.1 The domestic rules of formation of contracts and resulting problems190

6.2 Rules on the formation of contracts in the CISG and Unidroit Principles193

6.3 Conclusion of contracts and general conditions197

6.4 Effectiveness of clauses contained in general conditions203

6.5 Clauses governing the entry into force of the contract204

Chapter 7The ICC Model Forms207

1. The ICC Model Contracts in General207

1.1 The various model forms published by ICC207

1.2 General characteristics of the ICC models208

2. An Overview of the Model Forms not Included in this Book220

2.1 The ICC Model Occasional Intermediary Contract（ICC Publication No. 619）220

2.2 The ICC Model International Franchising Contract（ICC Publication No. 557）223

2.3 The ICC Model Selective Distribution Contract（ICC Publication No. 657）223

2.4 The ICC Model Contract for the Supply of an Industrial Plant（ICC Publication No. 653）225

2.5 The ICC Model M&A Contract 1: Share Purchase Agreement（ICC Publication No. 656）227

2.6 The ICC Model Turnkey Contract for Major Projects（ICC Publication No. 659）228

3. Contracts of Sale229

3.1 The UN Convention on the International Sale of Goods （CISG）229

3.2 Incoterms 2000238

3.3 The ICC Model International Sale Contract244

3.4 Text of the ICC Model International Sale Contract254

4. Agency and Distributorship Agreements260

4.1 Organizing distribution of products abroad260

4.2 Contracts with commercial agents265

4.3 The ICC Model Commercial Agency Contract （long form）273

4.4 Text of the ICC Model Commercial Agency Contract （long form）282

4.5 The ICC Model Commercial Agency Contract （short form）305

4.6 Text of the ICC Model Commercial Agency Contract （short form）308

4.7 The ICC Model Distributorship Contract （long form）315

4.8 Text of the ICC Model Distributorship Contract （long form）323

4.9 The ICC Model Distributorship Contract （short form）348

4.10 Text of the ICC Model Distributorship Contract （short form）350

Chapter 8Appendices359

1. Rome Convention of 19 June 1980 on the Law Applicableto Contractual Obligations359

2. Convention on the Recognition and Enforcement of Foreign Arbitral Awards（New York Convention 1958）373

3. United Nations Convention on Contracts for theInternational Sale of Goods378

4. UNIDROIT Principles of International Commercial Contracts 20041405

5. Incoterms 2000 WallChart442

6. ICC Force Majeure and Hardship Clause444

7. ICC Model Confidentiality1 Agreement448

8. ICC Rules of Arbitration455

About the Author471