Contract and Enforceability in International Business: What works?
Article from: OGEL Archive issue , in International Oil, Gas & Energy Dispute Management
Comment on Manfred Perlitz, Territorialitaet des Rechts als Problem des internationalen Managements (for: Special issue of Constitutional Economics, 1999, based on a conference in Saarbruecken October 1998)
Perlitz has raised in his contribution the importance of contract enforceability in host states from a management perspective. The first observation to be made is that transnational commercial contracts are very difficult to enforce. High transaction cost (national and foreign legal and specialised litigation and arbitral counsel, high costs of producing and submitting evidence; additional costs for recognition and enforcement of judicial or arbitral awards), even higher opportunity cost in terms of management attention (in home and host state), and reputation ...