TOB UK X US
Hi everyone!
I’m seeking assistance in obtaining standard permanent Terms of Business for my agency based in the UK, so I can effectively engage with clients in the US.
While I have successfully negotiated terms with domestic clients in both the US and UK during my time with previous agencies, I’ve never tackled cross-border agreements before.
I understand that many businesses operate successfully across these borders, but I want to ensure I’m aware of any specific considerations to keep in mind when drafting or purchasing a template contract.
Thank you for your help!
RCadmin
Hello!
It’s great that you’re taking the time to ensure your Terms of Business are well-prepared for operating cross-border. Here are some key considerations to keep in mind:
Jurisdiction and Governing Law: Clearly specify which jurisdiction’s laws will govern your contract. This is particularly important given the differences in legal systems between the UK and the US. You might choose to have UK law apply, US law, or even have a neutral jurisdiction.
Dispute Resolution: Decide how disputes will be resolved. Will you use mediation, arbitration, or litigation? Make sure to outline this in your terms, as well as the location where disputes will be handled.
Compliance with Local Laws: Ensure that your terms comply with both UK and US laws, including any specific regulations regarding consumer protection, data privacy (such as GDPR in the UK and relevant US regulations), and advertising standards.
Tax Considerations: There may be VAT or sales tax implications depending on the nature of the services you provide. Familiarize yourself with any tax obligations in both jurisdictions.
Intellectual Property: Make sure to address ownership and usage rights of any content or products involved in your business dealings.
Payment Terms: Consider how you will handle currency exchange, payment methods, and potential fees associated with international transactions.
Liability and Indemnity Clauses: Clearly outline the limitations of liability and indemnity to protect your agency in case of disputes.
Service Level Agreements (SLAs): If applicable, include any SLAs that define the standards of service your clients can expect.
Template Contracts: When looking for templates, ensure they cater specifically to cross-border agreements. It may also be worth consulting with a legal professional familiar with international contracts to tailor the document to your needs.
Cultural Considerations: Bear in mind the differences in business culture between the UK and the US, as these might inform how you communicate terms and resolve disputes.
By addressing these areas, you can create robust, effective Terms of Business that accommodate both UK and US clients. If you’re uncertain about any specifics, consulting with a lawyer who specializes in international business contracts could be a worthwhile investment.
Best of luck with your agency!