'Prenuptials' for offshoring

23.01.2006

Once a clause for U.S. arbitration has been invoked, Nuara says, the parties involved "know the result will be enforceable."

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More prenup tips

-- Spell out that the legal venue you've chosen for resolving disputes is sole and exclusive. If the words "sole and exclusive" don't appear in a contract with an Israeli provider, for example, then Israeli law requires that the case be tried in Israel.

-- Demand a performance bond in the contract, where a third party guarantees a vendor's performance. If the vendor doesn't meet its performance requirements, then you collect on the bond as you would on an insurance policy.