ICC, the International Chamber of Commerce, has been active in the preparation and publication of model contracts in recent years.
The purpose of preparing model contracts is to enable the parties to stay away from legal differences in their own national legislation as much as possible while signing contracts in international trade and to make faster and more effective trade by agreeing on common law rules.
For this reason, no national law was taken as a basis while preparing the ICC Model Contracts. It has been prepared in line with the general principles accepted by the national laws as much as possible and by considering the general customs and traditions used in international trade.
As it is known, in international trade relations, if the nationalities of the parties are different or the nationalities of the parties and the place where the contract will be executed are different, it is of great importance to ensure the legal security of the traders.
Considering that traders will give up trading if their legal security is not ensured, it is important to apply the basic contractual texts that contain uniformity and general principles in order to prevent the differences in legislation and interpretation from undermining commercial confidence.
Differences in both the preparation of contracts and the interpretation of contracts prevent uniform decisions even in the resolution of disputes, which ultimately directly negatively affects trade.
The ICC (International Chamber of Commerce) has model contracts in many different fields.
Some of those ; ICC Model Contract for International Sale, ICC Incidental Brokerage Model Contract, ICC Short Form Model Contracts, ICC Model Subcontract, ICC Model Consortium Agreement, ICC Model Brand License, ICC International Technology Transfer Model Agreement.
The disadvantage of ICC model contracts is that if you operate in a sub-sector of a commercial market, they do not contain clauses specifically related to that sub-sector. Contract contents are more abstract and general. For example; If you produce medicine or medical equipment for diabetics as a medical product, you will see that there is no detailed contract for the product you produce. In this case, if it is desired to use the contract containing the general conditions, it would be beneficial to revise this contract according to the commercial relationship between the parties and the legislation of the countries where the purchase and sale will take place, and add additional articles.
In other words, it can be said that ICC Model Contracts have useful contents in the preparation of the contents of the contracts to be prepared in detail.
In fact, there are warnings in this direction in the ICC Model Contracts and advice is given to the parties regarding the details.
Another beautiful aspect of ICC Model Contracts is that they have been prepared in accordance with the principle of equality while positioning the parties of the contract in the contract.
In practice, we see that clauses are added to contracts by keeping one party superior or privileged. In the ICC Model Contracts, this shortcoming was tried to be eliminated and the parties to the contract were included in the contract as equally as possible.
It is also necessary to distinguish ICC Model Contracts from general transaction contingent contracts. Because the parties do not have to use these contracts. Moreover, every item in the content of the contracts can be changed by the parties and can be freely negotiated.
While preparing international commercial contracts, it is important to ensure that the parties participate in the bargaining process on equal terms as possible.
In practice, we often come across that many commercial works are terminated before they even begin, only due to disputes during the preparation of the contract.
For your questions and requests for contract consultancy service, you can make a request to us via the e-mail address contact@mermerogluhukuk.com.