This image is about international business transactions.
By Davy Karkason
Founding Attorney

In the age of globalization, businesses frequently engage in international transactions. Although contracts exist, parties may still experience disputes that can lead to litigation, causing significant financial losses and lengthy legal proceedings. International arbitration is an increasingly popular option to resolve these disputes in a more efficient and cost-effective manner. This blog post explains how international arbitration can help resolve an international breach of contract.

What is an International Breach?

An international breach of contract occurs when one party fails to fulfill its obligations as outlined in the agreement. In international contracts, language barriers, culture clashes, and conflicting laws can exacerbate the situation, requiring skilled legal representation. When faced with a breach of contract, the first step is to review the terms of the agreement and determine whether a violation has occurred. Negotiation can sometimes resolve disputes, but if it fails, parties can choose international arbitration. See International Arbitration | Peace Palace Library

How does International Arbitration Work?

International arbitration is a process where parties agree to settle their dispute outside of court, selecting a neutral third party with expertise in relevant legal areas to make a binding and enforceable decision. Choosing international arbitration provides confidentiality and a more flexible, efficient, and cost-effective process. However, it’s worth noting that the process is voluntary and can only proceed if both parties mutually agree to use it. This means that the agreement must contain an international arbitration clause. For more information on how an international arbitration clause affects the agreement, please see our article Does an Arbitrational clause survive past the termination of your contract? – Transnational Matters

The Advantages of International Arbitration

One of the advantages of international arbitration is the ability to choose arbitrators with specific legal or industry expertise, making the process fairer, more efficient, and quicker. The process is confidential, so the outcomes and documents are not made public, and the final award is binding on the parties. For international contracts, the final award can be recognized and enforced in countries that are parties to relevant international agreements, speeding up the enforcement process. Additionally, the cost of arbitration can be significantly less than litigation, as the parties often share the costs.

Choosing the Right International Arbitration Tribunal

Choosing the right international arbitration Tribunal is crucial to ensure a favorable outcome when there is an international breach of contract. It’s important to choose providers that have a reputation for quality, impartiality, and expertise in relevant legal areas. Based on the location of the arbitration or the contract, it’s worth checking if there are any regional preferences. Furthermore, the provider should have experience in handling international disputes, understand cultural differences, and be able to offer a language that both parties understand.


In conclusion, an international breach of contract can be complex, and the traditional litigation process may not always be the best course of action. Skilled international arbitration attorneys can provide guidance and represent your interests in the dispute. International arbitration offers numerous benefits, including speed, flexibility, confidentiality, and cost-effectiveness. However, selecting the right provider is crucial to ensure a favorable outcome. Whether you’re a multinational corporation or an entrepreneur, you owe it to yourself and your business to keep the business operating as much as possible, in light of a breach, and international arbitration offers an excellent way to make that happen.

About the Author
As a lawyer and the founder of Transnational Matters, Davy Aaron Karkason represents numerous international companies and a wide variety of industries in Florida, the U.S., and abroad. He is dedicated to fighting against unjust expropriation and unfair treatment of any individual or entity involved in an international matter. Mr. Karason received his B.A. in Political Science & International Relations with a Minor in Criminal Justice from Nova Southeastern University. If you have any questions about this article you can contact Davy Karkason through our contact page.