The most outstanding feature of the ICC Model Contracts is that they are not drafted to be imposed by one of the parties to the other party in a manner to restrict the freedom of will principle - they adopt the rules that reflect the market place. Thus, they must be distinguished from other contracts where one of the parties is economically and socially more powerful and manipulating the other party to its detriment.
In this vein, the ICC Model Contracts are intended to help parties with equal bargaining power to negotiate a fair contract ICC Model Contracts are drafted with a purpose to replace the choice between differing national legislations, which are often not adapted to the needs of international trade, by a detailed set of contractual provisions. Firstly, ICC Model Contracts are not based on a particular national law, but reflect the general principles of law and the trade usages.
They give priority to the transaction and not to industry, meaning that they are not directed to parties who look for accommodating the specifics of their trade Moreover, they are suitable for use in business to business B2B transactions, rather than business to consumer B2C transactions.
To the extent necessary, the users are warned that for some specific issues, national laws may provide different solutions under their "protection of consumers regulations" applicable to the relevant type of contractual relations Further, ICC Model Contracts are designed for international transactions, and the users are advised to take into account international character when used domestically. Many domestic laws lack rules for certain type of contracts e.
Thus, inconvenience, or insufficiency of domestic rules for international transactions, ceases to be a problem. Moreover, they are drafted in a balanced way without favoring one or the other side of the transaction. It would be improper for the ICC, which represents all parties of international trade, to take sides.
They are drafted to be fully altered and adapted to meet the situation in hand They all have a detailed "Introduction" part explaining to the users several important issues and characteristics of the contract.
The "Body" of ICC Model Contracts invites the parties to agree to one of the stated alternatives, either by filling in a blank space on the contract, or by simply ticking a box. Such alternative solutions are presented side by side under the letters A and B, in order to point out that only one of them can apply.
However, they also provide default solutions: If the parties do not make a choice by canceling one alternative, one of them will automatically apply. The appendices contain useful information, such as indications on national laws for a particular topic. Important Provisions. There are several common provisions that are included in most of the ICC Model Contracts, such as notices, assignments, amendments, previous agreements, entire agreement, severability, etc.
Sometimes criticized for showing the obvious, I believe that the "Good Faith and Fair Dealing" provision reminds the parties of good faith and, therefore, is useful ICC Model Contracts offer either arbitration or jurisdiction of national courts as a method of dispute resolution. ICC arbitration is the default solution in the absence of choice, and the Model Contracts drafted after also provide for ADR in their dispute resolution clause.
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