Your contract says New York law. But in Brazil, it might mean nothing.
Discover the legal trap that voids foreign governing law.
Your contract says New York law. But in Brazil, it might mean nothing.
Discover the legal trap that voids foreign governing law.
You have the contract, the deal is done. But when a dispute arises in Brazil, that 'governing law' clause you insisted on? Courts often ignore it. Brazilian judges default to local law if the contract was formed here.
✘ Mito
I signed in São Paulo, but my contract is governed by English law, so English courts apply.
✓ Verdade
Brazilian courts see it differently: place of signing determines applicable law under LINDB Article 9.
Can I simply choose a foreign law in my Brazilian contract?
Not if it violates public policy. Brazilian judges may void it and apply the Civil Code instead.
Dica
The golden key to enforce your foreign law choice is arbitration. Unlike courts, arbitral tribunals respect party autonomy and can apply the law you agreed on.
Always include an arbitration clause
Specify the seat of arbitration outside Brazil
Ensure the clause is clear and mandatory
“
Territoriality traps vanish when you choose the right dispute resolution. Arbitration is your sovereignty clause.
Remember: even with arbitration, the contract's substantive law must not offend Brazilian public policy. A truly international contract requires local expertise to bridge the gap.
Don't let a blind spot in your contract cost you millions.