Overview

While cross-border contracts are widely entered into, the counterparties are not always aware of all the legal issues, especially in terms of the national legislation of the signatories to such agreements.

Cross-border contracts – legally referred to as foreign economic contracts – are widely used in Ukraine. According to legislation in Ukraine, a foreign economic contract is a formally executed agreement of two or more business entities - being Ukrainian residents and their foreign counterparties - entered into with the purpose of establishment, modification or termination of their reciprocal rights and obligations with regard to foreign economic activity. In order for such agreements to be legally valid and binding, they should comply with Ukrainian imperative contract law provisions irrespective of whether such contracts are governed by Ukrainian or any other law.

This article aims to highlight the most essential legal requirements of Ukrainian legislation in foreign economic contracts which should help foreign companies to identify certain principal points subject to negotiations between the parties.