Cross-Border Commercial Contracts and the Ongoing Need for Consideration

54 Pages Posted: 17 Aug 2015 Last revised: 10 Nov 2016

See all articles by Kevin Fandl

Kevin Fandl

Temple University - Fox School of Business and Management

Date Written: February 1, 2015

Abstract

Private contracts for the exchange of goods and services are increasingly made across national borders. Firms continue to look for the best suppliers for their inputs or the best markets for their outputs, and as the costs of transport come down, global market access goes up. Yet the most fundamental tool of international business — the contract — may be much less “global” than the business itself. The understanding that a firm has of how a contract is formed and enforced in their home jurisdiction may conflict with that of their partners or customers in foreign jurisdictions. In this article, I will examine the common law contract requirement of consideration, an element that can make or break a contract. I will compare the requirements for forming a contract in civil and common law jurisdictions and explain how consideration can be overlooked or underemphasized and what effect this has on the enforcement of commercial contracts. Finally, I will offer practical suggestions for the parties to avoid a consideration challenge following execution of their agreement.

Suggested Citation

Fandl, Kevin, Cross-Border Commercial Contracts and the Ongoing Need for Consideration (February 1, 2015). Berkeley Journal of International Law (BJIL), Vol. 34, No. 2, 2016. Available at SSRN: https://ssrn.com/abstract=2645395 or http://dx.doi.org/10.2139/ssrn.2645395

Kevin Fandl (Contact Author)

Temple University - Fox School of Business and Management ( email )

Philadelphia, PA 19122
United States
2027255305 (Phone)

HOME PAGE: http://www.kevinfandl.com

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