International Contracts: Incoterms and Franco-Arab Deals

International Contracts in French

Incoterms en français

Incoterms (International Commercial Terms) — international trade rules by the ICC. It is important to know the French terms for working with French-speaking partners.

In the contract:

• “La livraison se fera selon les termes CIF port de Dubaï (Incoterms 2020).”
• “Le risque sera transféré à l'acheteur au moment de la livraison FOB.”

Structure of an International Contract: Features

Droit applicable (Applicable Law)

• The present contract is subject to French law / the laws of the United Arab Emirates.
• The parties choose English law as the applicable law (“English law governed”).

For compétent (Jurisdiction)

• In case of dispute, the courts of Paris will have jurisdiction.
• Any dispute will be submitted to arbitration in accordance with the rules of the DIFC-LCIA Arbitration Centre / ICC.

Langue du contrat (Language of the contract)

• The present contract is drawn up in French and Arabic. In case of divergence, the French version shall prevail. — In the case of disagreements, the French version has priority.

Franco-Arab Business Contracts: Specifics

Key points when working with Arabic-speaking partners:

Notarial certification:

• In the UAE, documents in Arabic have legal priority
• The official translation must be certified (traduction assermentée)

Cultural features:

• Wasta (personal connections) is important both in the UAE and Lebanon / Morocco
• Halal business practices: prohibition of riba (usury in the traditional sense)
• Ramadan: business activity decreases, respect the schedule

Payment guarantees:

• lettre de crédit (LC / L/C) — letter of credit (standard in international trade)
• caution bancaire — bank guarantee
• garantie à première demande — guarantee on first demand

Signature format:

• In France: handwritten signature + stamp (the stamp is not mandatory, but desirable)
• UAE mainland: notarial certification + apostille + translation is often required

Force Majeure Clause: Sample

“Aucune des Parties ne sera tenue responsable de tout retard ou inexécution de ses obligations dans la mesure où ce retard ou cette inexécution résulte d'un événement de force majeure, défini comme tout événement imprévisible, irrésistible et extérieur aux Parties, incluant notamment: catastrophes naturelles, actes de guerre, grèves générales, décisions gouvernementales et pandémies.”

“No Party shall be held liable for any delay or failure in fulfilling its obligations insofar as such delay or failure results from an event of force majeure, defined as any event that is unforeseeable, irresistible, and external to the Parties, including but not limited to: natural disasters, acts of war, general strikes, government decisions, and pandemics.”