introducing a common tool for business and defense lawyers unidroit principles … · introducing a...

Introducing a Common Tool for Business and Defense Lawyers

- The UNIDROIT Principles of International Commercial Contracts as a bridge for business (of

clients and lawyers)-Rechtsanwalt Prof. Dr. Eckart Brödermann (University of Hamburg), LL.M. (Harvard), Maître en droit (Paris V), FCIArb. (London), Attorney-at-law (New York), (German) Bar Certified Spcialist for Cross-BorderEconomic Law

Boston Global, 18 October 2018 hosted by: Primerus Business Law Institute

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Goal of this Speech

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Agenda

I. Examples of potential clashes

between different common and different civil laws - and different cultures

II. Risk Management

III. Reduce risks by building bridges

with the UNIDROIT Principles of International Commercial Contracts

IV. Practical personal experience

V. Business Development

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Examples of potential clashes between different common and different civil laws ….. and different cultures

Dutch

W.B.

▪ Mind-set of arbitrators and judges▪ Fact v. Law▪ Prescription▪ Language▪ Interpretationof contracts▪ Battle of forms▪ Taking of Evidence▪ Preparation of witnesses

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Risk Management

▪ A corporate law duty of

our clients

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Risk Management

➢ And: A professional duty for you!

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The steps of risk management

Risk Management Planning

Discovering the Risks

Understanding of Risks

Evaluation of Risks

Regulation of Risks

Controlling of Risks

Risk

Management

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Risk graph

Probability

of RealisationProbable Amount of Damage

often

probable

sometimes

seldom

unlikely

Not

imaginable

De minimis slight critical disastrous

Unacceptable area

Risk minimisation by shaping of the contract

acceptable

Risk Evaluation

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Discovering the Risks

Different causes

Delay

Increased Costs

Impossibility

– The realization of the project becomes

impossible

– Damage to the company (the client)

People (Team, Opponent)

Project (Technical issues)

Economic Issues (e.g. Finances)

Operational Issues

(interdisciplinary)

Cultural Issues

Legal Reasons

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Mastering the skill-set for cross border contracts

Knowledge about methods of interpretation

◼ Schemes of interpretation

Legal Fields of Knowledge

◼ Contracts

➡etc.Legal Reasons

Internal

Organisation

Intellectual

Property

International

Taxation

Customs

Export control

(„dual use“)

Cultural

competence

Transport &

Insurance

Operative

core

competences

International

legal

competence

Language

skills

Mastering the research of sources of law

◼ International treaties

◼ (Regional – eg NAFTA) Law

◼ National law

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Step 1: Forum which accepts the UNIDROIT Principles

▪ The dispute resolution clause

▪ Trumps the choice of law clause→ it determines the mind-set

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Step 2: The choice of UNIDROIT Principles clause

▪ The 2d clause in ranking

▪ A disruptive legal technology, but it functions

▪ No state law, but rules of law

▪ It sets the scene for clauses on:

– Liability, Indemnity, Consequential damages,

Warranty, Insurance etc.

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UNIDROIT Principles - Background

▪ An international restatement of commercial law and a compromise between civiland common law (1985-2016)

▪ Key features: responsibility by spheres, except for force majeure or other distribution of the risk by contract (exemption clause Art. 7.1.6.) plus a basic commitment to fairness

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UNIDROIT Principles: underlying general principles

✓Freedom of Contract

✓Fair Dealing

✓Bindingness of a contract

✓Openness to usages

✓Upholding the contract if possible

✓Interpretation and supplementationin accordance with the underlyinggeneral principles

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UNIDROIT Principles: practical value (1)

❖ A robust system of default rules on performance

❖ Time zone management (Art. 1.12 (3))

❖ Language (Art. 4.7)

❖ Currency (Arts. 6.1.9 et seq., Art. 7.4.12 – damage; Art. 8.2 – set-off)

❖ Public permission requirements (Art. 6.1.14 – 6.1.17)

❖ Payment by transfer of funds (Art. 6.1.8)

❖ Interest rate (Art. 7.4.9 (2))

❖ rule favoring contracts with open terms (Art. 2.1.14)

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UNIDROIT Principles: practical value (2)

> 30 compromises

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17 Years of Practical Experience

➢ In Arbitration➢ In Litigation➢ In Negotiation➢ As Entrepreneur

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Industry Experience

Automotive

Construction

Cooperations

Distribution

Health

Gold

IT

Satellite

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Writing Experience

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What‘s in for us as a Primerus Team?

Merci beaucoup!

Vielen Dank!شكراً جزيلً

Thank you very much!

Rechtsanwalt Prof. Dr. Eckart Brödermann(Universität Hamburg), LL.M. (Harvard), Maître en droit (Paris V), FCIArb. (London)

(German) Bar Certified Spcialist for Cross-Border Economic Law, Attorney-at-law(New York), Rechtsanwalt (Germany)

ABC-Str. 1520354 Hamburg

www.german-law.com