Advisory on contractual risk assessment in the course of concluding an international agreement with an EU counterparty

Advisory on contractual risk assessment in the course of concluding an international agreement with an EU counterparty

09.03.2025

Our lawyers provided legal support to a client during the negotiation and execution of an international agreement with a counterparty — a company domiciled in one of the European Union member states.

The project focused on conducting a comprehensive legal review of the proposed contract to identify potential legal and commercial risks arising from specific contractual provisions, as well as to ensure compliance with applicable domestic and international law. The primary objective of the advisory was to detect clauses that could expose the client to adverse legal consequences, both during contract performance and in the event of a dispute. Accordingly, our legal opinion covered both substantive provisions and procedural considerations, including applicable jurisdiction, dispute resolution mechanisms, protective remedies, and the possibility of unilateral amendments to the agreement.

During the course of the review, several clauses were identified as potentially exposing the client to legal and financial risks. These included the absence of clearly defined liability limits, disproportionate allocation of risks between the parties, ambiguous confidentiality obligations related to the retention of signed originals, lack of a well-regulated termination procedure, and a dispute resolution clause that could be unfavorable to the client. The agreement was also assessed for compliance with the counterparty’s national legislation and international contractual standards.

As a result of our review, the client received a set of practical recommendations aimed at amending specific provisions of the agreement to mitigate legal risks, enhance the protection of the client’s interests, and ensure a balanced distribution of responsibilities between the parties.

Dmytro

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