5 Contract Mistakes That Cost Foreigners in Brazil
And why your English template quietly breaks here
Por Lucas Ribeiro Cavalcante — OAB/CE 44.673
5 Contract Mistakes That Cost Foreigners in Brazil
And why your English template quietly breaks here
Por Lucas Ribeiro Cavalcante — OAB/CE 44.673
You signed the contract. Then a Brazilian partner says it "won't hold up here." A lawyer frowns at your document. That knot in your stomach? It's usually preventable.
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When a contract is performed in Brazil, Brazilian law applies. No matter what your document says.
✘ Mito
Common Law: judicial precedent rules everything
✓ Verdade
Brazil: written codes and formal rules dominate
Mistake #1: pricing your lease or service in dollars. Under Lei 10.192/2001, domestic obligations must be in reais. That USD clause can be struck down entirely.
18%
A consultancy billing in euros lost this share to forced conversion when the court settled in reais
Dica
Price the contract in reais. Want protection from currency swings? Add an indexation clause tied to an official index or exchange reference. Legal and stable.
Price in reais
Add indexation clause
Check for legal exceptions
Can any contract in Brazil use dollars?
Yes. Imports, exports and deals with parties abroad may legitimately use foreign currency.
Almost every contract problem is fixable, even after signing. Don't wait for it to break.