Your contract says New York law. But in Brazil, it might mean nothing.
Your contract says New York law. But in Brazil, it might mean nothing.
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.
✗ I signed in São Paulo, but my contract is governed by English law, so English courts apply.
Can I simply choose a foreign law in my Brazilian contract?
DICA
✓ 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.