Sotomayor and business contracts
The significance of the rule of law in business was underscored during the current confirmation hearings for Supreme Court nominee Sonia Sotomayor. In speaking about her experience as a lawyer in private practice, Sotomayor is reported saying,
In business, the predictability of law may be the most necessary in the sense that people organize their business relationships based on how they understand the courts interpret their contracts.
How right she is. The rule of law provides predictability, consistency, and stability. Those are traits we come to expect from the legal system of countries with a developed economies.
In business we need to know what contracts mean and how they can be enforced. After all, contracts are the backbone of business — covering everything from the handshake agreement, to the preprinted purchase orders, and the fancy written agreements that most folks think of as a “real” contract.
When doing business abroad, sometimes the rules we have come to know and expect just aren’t there. That is particularly true in fast developing economies, where business necessities often outpace the existing rule of law and the law is trying hard to catch-up. When that happens, business transactions are subject to an additional level of uncertainty and risk.
In recent years, no economy has grown faster in the world than China’s. If you’ve ever wondered about the legal aspects of doing business in Greater China, you’re invited to submit your questions about the subject by clicking here. You are also invited to join me on July 22nd when I’ll be interviewing international legal expert Nicholas V. Chen, a partner in the Pamir Law Group about this very subject in a complimentary teleseminar. Receive the call-in information by clicking here and submitting a question you’d like me to ask him about this timely topic.
© Corporate M.O., LLC 2009
Tags: business contracts, Greater China, Nicholas V. Chen, Pamir Law Group, Rule of Law, Sotomayor