Settlement Agreements In Commercial Disputes

When one party to an IMSA refuses to abide by the parties` agreement, the other party has traditionally had to take legal action or arbitrate. This undermines the benefits behind the original reason for going through mediation. Enforcement procedures may be simplified (because the dispute has been circumscribed by IMSA, unlike a new procedure under the conditions of the original dispute), but the additional time and costs may be considerable. Where a party attempts to impose an IMSA through domestic disputes, the possibilities for enforcement outside the national jurisdiction are limited (as are national judgments). Current methods of implementing internationally negotiated settlement agreements, through litigation or arbitration; enabling provisions; and approval – are considered insufficient. To address this problem, UNCITRAL has been working on the creation of a new legal instrument to expedite the implementation of those agreements. The working group still needs to do considerable work to agree on a framework, starting with basic concepts: defining the scope and nature of the agreements to be covered; the development of a functional definition of the concept of international commercial mediation and conciliation; the establishment of form and substance requirements for IMSA; define the requirements of an appropriate procedure. Even if the Committee reaches consensus, many obstacles remain before a convention (or other instrument) is drafted and finally ratified. You always use specialist tax advice and make sure that it is taken into account in transaction negotiations (for example.B. may be subject to VAT on invoicing).