Step-by-Step Guide to Drafting an International Agreement
Note: Links to our free templates are at the bottom of this long guide.
Also note: This is not legal advice
Introduction
The development of international agreements is an intricate process, one that requires a vast and complex range of considerations. They are the binding legal documents that govern collaboration, communication, and cooperation between countries, organizations, and societies – all while taking into account the specific needs and interests of each stakeholder. This task is immensely important as it forms the basis for long-term relationships built on trust and understanding.
At Ƶ, we understand how daunting this task can be. That’s why we have developed a free step-by-step guide to ensure all parties involved in an agreement are aware of their obligations under its terms; to guarantee that all relevant legal parameters are taken into consideration; and ultimately, to guarantee the enforceability of said agreement. As such agreements must be flexible enough to evolve with changing circumstances brought about by globalization – particularly when dealing with trade issues or matters related to human rights – our guide provides users with the ability to customize their legal documents accordingly without paying a lawyer or relying on an expert opinion.
Moreover, international agreements can also serve as a source for unity among countries, organizations, societies - working together for collective progress - as well as promoting peace, security, and stability across regions. Leveraging our comprehensive open source library made up of millions of data points gathered from market standard international agreements worldwide is key in ensuring users create legally sound documents that meet their requirements whilst safeguarding against any potential disputes in the future.
At Ƶ we’re passionate about providing tools which make it easier for people around the world to access high quality legal templates quickly — so they don’t have to worry about getting bogged down in complex legislation every time they need something drafted fast. Read on below for more information regarding our step-by-step guidance as well as how you can access our template library today!
Definitions
Parties Involved: Individuals or groups that are part of a contract or agreement.
Objectives: The goals that each party in an agreement hopes to achieve.
Scope: The range of topics that the agreement covers.
Negotiations: Discussions between parties in order to reach an agreement.
Drafting: The process of writing out the details of an agreement.
Signing and Ratifying: Making an agreement official by having all involved parties sign it and following the legal process of approval.
Implementing: Putting the agreement into action.
Monitoring: Keeping an eye on the progress of an agreement to ensure all parties are abiding by it.
Evaluating: Assessing the effectiveness of the agreement.
Renewing or Terminating: Deciding whether to continue, end, or make changes to the agreement.
Contents
- Identifying the Parties Involved
- Identify all relevant governments, organizations, and businesses involved in the agreement
- Determine the roles and responsibilities of all parties involved
- Establishing Objectives
- Establish the overall goal of the agreement
- Identify the objectives of each party involved
- Defining the Scope of the Agreement
- Determine which issues will be addressed in the agreement
- Establish the rights and obligations of each party
- Establish any limitations or exclusions that may be necessary
- Establishing a Negotiation Process
- Identify who will be involved in the negotiations
- Determine how decisions will be made
- Establish a process for resolving disputes
- Drafting the Agreement
- Collect all relevant information and documents
- Draft the agreement, taking legal considerations into account
- Consider any potential pitfalls that may arise
- Signing and Ratifying the Agreement
- Determine the requirements for signing and ratifying the agreement
- Ensure all parties involved have signed and ratified the agreement
- Implementing the Agreement
- Prepare for the implementation of the agreement
- Establish enforcement mechanisms
- Determine how to handle any changes or amendments that may be necessary
- Monitoring the Agreement
- Establish a process for monitoring the agreement
- Determine how to address any non-compliance or breaches
- Evaluating the Agreement
- Establish a process for evaluating the effectiveness of the agreement
- Identify any areas that need improvement
- Renewing or Terminating the Agreement
- Determine the process for renewing or terminating the agreement
- Establish any conditions that must be met before the agreement can be renewed or terminated
Get started
Identifying the Parties Involved
- Identify all governments, organizations, and businesses that will be parties to the agreement.
- Contact all parties and determine who is authorized to sign the agreement.
- Obtain contact information for all parties involved, such as addresses and emails.
- Confirm the legal capacity of the parties.
- Confirm the party’s ability to enter into the agreement.
How you’ll know when you can check this off your list and move on to the next step:
- When all parties have been identified and contacted, and their legal capacity and ability to enter into the agreement have been confirmed.
Identify all relevant governments, organizations, and businesses involved in the agreement
- Make a list of all parties that could be involved in the agreement
- Contact each party to discuss their interest in being a part of the agreement
- Review the agreements each party has with the other parties and ensure that all parties are in agreement
- Make sure that all parties involved have the necessary authority to sign the agreement
- Once all parties have been identified and contacted, you can move on to the next step.
Determine the roles and responsibilities of all parties involved
- Research the interests of each party involved
- Analyze the scope of influence each party has on the agreement
- Identify the roles and responsibilities of each party in relation to the agreement
- Develop an outline of the responsibilities of each party
- Create a list of tasks that each party must complete to comply with the agreement
You can check off this step when you have identified the roles and responsibilities of all parties involved in the agreement.
Establishing Objectives
- Identify the main objectives of the agreement and list them in order of priority
- Decide which of the objectives are most important and which can be omitted
- Consider all relevant factors, such as the interests of the parties involved, the terms of the agreement, and the nature of the relationship
- Draft the objectives in a clear and concise manner, ensuring that all parties understand the purpose of the agreement
- Ask for feedback from all parties on the objectives, and make any necessary changes
You’ll know you’re ready to move on to the next step when all parties have agreed on the objectives of the agreement and they are clearly outlined in the draft.
Establish the overall goal of the agreement
- Gather all the parties involved in the agreement and discuss the ultimate goal of the agreement
- Brainstorm potential objectives that would achieve this goal
- List the objectives that are most likely to be agreed upon by all parties
- Prioritize the objectives and determine the most important ones
- Once all parties have agreed on the objectives, you can move on to the next step.
Identify the objectives of each party involved
- Talk to each party and determine what they are hoping to gain from the agreement
- Ask each party to provide a clear and concise list of their objectives
- Compare the objectives of each party and ensure they are compatible
- Resolve any discrepancies or conflicts in objectives
- Make sure all objectives are agreed upon by each party
- When all objectives are agreed upon, document the objectives and move on to the next step.
Defining the Scope of the Agreement
- Establish the purpose of the agreement, the parties involved and their respective roles
- Define the scope of the agreement in terms of geographical jurisdiction and how it will be enforced
- Identify the parties’ interests and objectives, and how those interests may conflict or overlap
- Outline the purpose and objectives of the agreement, and the solutions that can be provided
- Identify the particular issues or areas of the agreement that will be addressed, such as trade, environment, labor, etc.
- Determine if there are any related agreements or laws that should be incorporated into the agreement
- Identify potential risks and liabilities associated with the agreement
Once you have established the scope of the agreement and identified the objectives and interests of the parties involved, you can move on to the next step.
Determine which issues will be addressed in the agreement
- Identify the key issues to be covered in the agreement, such as payment, dispute resolution, and termination
- List out all the specific details that need to be addressed in the agreement
- Ensure that each issue is clearly defined, with language that is unambiguous and measurable
- Make sure that all the issues and details cover both parties’ expectations and needs
- When you have a comprehensive list of issues, you are ready to move to the next step
- Check that the list is complete and that all parties agree with the list of issues to be included in the agreement
Establish the rights and obligations of each party
- Identify the rights and obligations of each party under the agreement
- Take into account any applicable laws or regulations that will apply
- Consider what type of remedies or sanctions the parties may be entitled to in the event of a breach of the agreement
- Draft clauses in the agreement that clearly define the rights and obligations of each party
- Ensure that all rights and obligations are consistent with the objectives of the agreement
- Check that the agreement is fair and equitable to both parties
- Check that the agreement is legally binding
You can check this step off your list and move on to the next step when you have identified, considered, and drafted all of the rights and obligations of each party in the agreement.
Establish any limitations or exclusions that may be necessary
- Identify any areas you need to limit within the agreement, such as geographic limitations, time limits, or monetary thresholds.
- Make sure that the limitations and exclusions are clear and specific and that they are in line with the goals of the agreement.
- Draft language that clearly states the limitations and exclusions within the agreement.
- Review the language of the limitation and exclusions with all involved parties to ensure that everyone is in agreement.
- Make any necessary revisions to the language of the limitation and exclusions.
- Finalize the language of the limitation and exclusions.
Once you have finalized the language of the limitations and exclusions, you can move on to the next step in drafting the international agreement.
Establishing a Negotiation Process
- Decide on a negotiation process that will be suitable for all parties involved.
- Discuss a timeline for the negotiation process, including any deadlines for submitting documents or holding meetings.
- Consider methods of dispute resolution, such as arbitration or mediation, in the event of a disagreement.
- Draft a negotiation procedure outlining how the negotiations will be conducted.
- Distribute the negotiation procedure to all parties involved for review and approval.
Once all parties have approved the negotiation procedure and timeline, you can move on to the next step.
Identify who will be involved in the negotiations
- Identify the countries or organizations that will be involved in the negotiations.
- Make sure the parties have the proper authority to negotiate and sign an international agreement.
- Establish the roles and responsibilities of each party in the negotiations.
- Determine the level of representation by each party (e.g. heads of state, senior government officials, etc.).
- Invite representatives of each party to participate in the negotiations.
How you’ll know when you can check this off your list and move on to the next step:
- When all the parties involved in the negotiations have been identified and invited.
- When all the roles and responsibilities of each party have been established.
- When the level of representation for each party has been determined.
Determine how decisions will be made
- Research and identify the different types of decision-making models, such as majority rule, consensus-based, and supermajority
- Discuss and decide which model will be used for making decisions during negotiations
- Agree upon the necessary voting thresholds for each model, if applicable
- Once the decision-making model has been determined, document the details and confirm that all parties are in agreement
- This step is complete when all parties have agreed to the decision-making model to be used during negotiations.
Establish a process for resolving disputes
- Outline the process for resolving disputes, including the process for initiating a dispute, how disputes will be resolved, and any applicable deadlines
- Consider creating a dispute resolution procedure in the agreement, such as arbitration or mediation
- Consider including a choice of law provision that states which jurisdiction will be used to interpret the agreement
- Consider including language that prevents one of the parties from using local laws to gain an unfair advantage
- When you have established a process for resolving disputes, you can move on to the next step of drafting the agreement.
Drafting the Agreement
- Create a template for the agreement that includes all elements necessary for it to be legally binding
- Draft the agreement in accordance with the terms agreed upon by the parties and in accordance with applicable laws
- Ensure that each party’s roles and responsibilities are clearly defined in the agreement
- Make sure to include all necessary provisions for dispute resolution
- Have the agreement reviewed by legal counsel to ensure that it meets all necessary requirements
- Once the agreement is finalized, have each party sign the document and exchange copies
You’ll know you can check this step off your list and move on to the next step when you have finalized the agreement and have the signed copies in hand.
Collect all relevant information and documents
- Research and identify all documents that need to be included in the agreement
- Gather all the necessary documents that should be included in the agreement
- Ensure that the documents are complete and up-to-date
- Create a checklist of all the documents that need to be included in the agreement
- Confirm the legality of the documents
- Confirm the authenticity of the documents
- Check that the documents have been correctly signed by all parties
- When all the required documents have been gathered and checked, you can move on to the next step of drafting the agreement.
Draft the agreement, taking legal considerations into account
- Read through the information and documents you collected in the previous step and review them with a lawyer to make sure you understand all of the legal considerations.
- Identify any potential legal issues that may arise and determine how to address them in the agreement.
- Draft the agreement in a way that addresses any potential legal issues and complies with any applicable laws.
- Ask your lawyer to review the agreement and provide feedback.
- Make any necessary adjustments to the agreement based on the lawyer’s feedback.
- Once the agreement is finalized and legally compliant, you can check off this step and move on to the next step.
Consider any potential pitfalls that may arise
- Research the applicable laws of all countries involved in the agreement
- Identify any potential language barriers
- Review any existing laws or regulations in the countries involved
- Consider any cultural differences that may impact the agreement
- Identify any potential legal, political, or economic issues that may arise
- Evaluate any potential financial implications the agreement may have
- Determine the impact the agreement may have on the environment
Once you have researched the applicable laws of all countries involved, identified any potential language barriers, reviewed any existing laws or regulations in the countries involved, considered any cultural differences that may impact the agreement, identified any potential legal, political, or economic issues that may arise, evaluated any potential financial implications the agreement may have and determined the impact the agreement may have on the environment, you will have completed this step and can move on to the next step.
Signing and Ratifying the Agreement
- Consult with relevant legal counsel to ensure all parties comply with their respective laws
- Draft a signature page and have relevant parties sign the agreement
- Notify relevant authorities in each country of the agreement
- Submit the agreement for ratification from the respective governments
- Monitor compliance with the agreement
- Once all parties have ratified the agreement, it enters into force
You’ll know you can check off this step when all relevant parties have signed and ratified the agreement and it has entered into force.
Determine the requirements for signing and ratifying the agreement
- Research the applicable laws and regulations that govern the agreement
- Identify any requirements of the domestic and/or international law that will need to be met
- Determine the number of signatories and ratifications that are needed to make the agreement legally binding
- Confirm the number of signatories and ratifications necessary and define the duration of time in which they must be completed
- Make sure that all required documents are in place prior to signing and ratifying the agreement
- Determine any additional approval or ratification processes that need to be completed before the agreement is considered valid and binding
When you can check this off your list and move on to the next step:
- All requirements of the domestic and/or international law have been met
- The number of signatories and ratifications necessary have been confirmed and defined
- All required documents are in place prior to signing and ratifying the agreement
- Any additional approval or ratification processes have been completed
Ensure all parties involved have signed and ratified the agreement
- Obtain from each party the original signed document and any accompanying ratification documents
- Ensure all the necessary signatures are present and all ratification documents are included
- Verify authenticity of all signatures and ratification documents
- Check that all parties have met the requirements for signing and ratifying the agreement
- When all conditions are met, the agreement will be valid and enforceable and you can move on to the next step
Implementing the Agreement
- Organize any meetings or events necessary to introduce the agreement and its purpose
- Create a timeline of key steps, dates, and deadlines for the agreement
- Develop an implementation plan that outlines the responsibilities of all parties involved
- Communicate the plan to the relevant stakeholders and ensure they understand their roles and obligations
- Monitor progress on the plan and provide necessary updates
- Make necessary adjustments and resolve conflicts
You’ll know you can move on to the next step when you have a well-developed implementation plan that has been communicated to all stakeholders and all parties have accepted their responsibilities and obligations.
Prepare for the implementation of the agreement
- Research the relevant laws and regulations of the countries involved for compliance with the agreement
- Review the agreement to ensure that the language is clear and concise
- Identify third-party service providers that will be used to aid in the implementation of the agreement
- Establish a timeline for implementation of the agreement
- Identify any potential risks associated with the agreement and determine a plan to mitigate them
- Meet with all parties involved to discuss the implementation of the agreement and to ensure that all parties are on the same page
- When all parties are in agreement and the preparation is complete, you can move on to the next step of establishing enforcement mechanisms.
Establish enforcement mechanisms
- Research international enforcement bodies that may be able to oversee the enforcement of the agreement
- Identify clear and precise enforcement mechanisms, such as sanctions or penalties, that can be used if needed
- Draft language within the agreement that outlines the enforcement mechanisms and the responsibilities of the parties
- Ensure that the enforcement mechanisms are appropriate and enforceable in the jurisdiction
- Review the agreement with all parties to ensure that they understand and agree to the enforcement mechanisms
- When all parties are in agreement, finalize the language and include it in the agreement
- Once you have finished this step, you can move on to determining how to handle any changes or amendments that may be necessary.
Determine how to handle any changes or amendments that may be necessary
- Establish a process for how changes or amendments to the agreement will be proposed, discussed and approved.
- Decide who will be responsible for monitoring and ensuring any changes or amendments are properly documented and communicated to all parties.
- Agree on a process for resolving disputes related to changes or amendments to the agreement.
- Determine the specific language to include in the agreement that outlines the process to handle changes or amendments.
- Review and agree on any additional steps that need to be taken to ensure all parties are aware of any changes or amendments.
Once you have established a process for how changes or amendments to the agreement will be proposed, discussed, approved and documented, you can check this off your list and move on to the next step.
Monitoring the Agreement
- Identify the criteria for monitoring the agreement, such as any performance targets or milestones
- Establish a timeline for when the agreement should be monitored
- Designate a responsible party to monitor the agreement and report any changes or updates
- Establish a process for resolving any disputes that arise
- Make sure that all parties agree to the monitoring process
- Once all parties have agreed, the step can be checked off the list and the next step can be moved on to.
Establish a process for monitoring the agreement
- List out the specific parties and individuals responsible for monitoring the agreement
- Agree on the frequency and method of monitoring (e.g. regular meetings, reports, etc.)
- Determine how disputes will be addressed and resolved
- Set a timeline for review of the agreement
- When all the above points are in place, the process for monitoring the agreement can be considered established.
Determine how to address any non-compliance or breaches
- Establish a process for determining when a breach or non-compliance has occurred.
- Consider what legal remedies are available.
- Determine what type of enforcement provisions are appropriate.
- Include a clear definition of what constitutes a breach or non-compliance.
- Specify any penalties for non-compliance.
- Include a dispute resolution process for resolving any disputes about non-compliance or breaches.
Once you have established the process for determining when a breach or non-compliance has occurred and included provisions for enforcement and dispute resolution, you can check off this step and move on to the next step in the guide.
Evaluating the Agreement
- Gather all relevant stakeholders and discuss the effectiveness of the agreement
- Evaluate the agreement’s ability to fulfill the original objectives and goals
- Analyze the cost/benefit associated with the agreement
- Identify any areas of the agreement that could be improved
- Discuss any potential changes or amendments to the agreement
- When all evaluations have been completed, document any changes or amendments to the agreement
- When the evaluation and changes are complete, the agreement is ready to be implemented and enforced.
Establish a process for evaluating the effectiveness of the agreement
- Outline the criteria used to evaluate the agreement
- Develop a system for monitoring progress against the criteria
- Appoint a team to review the agreement on an ongoing basis
- Determine how often the agreement should be evaluated
- Set benchmarks for evaluating the performance of the agreement
- Once the process has been established, review it regularly and make changes as needed
- When the evaluation process is finalized, document it and make it available to all parties involved
- When the evaluation process is complete, you can move on to the next step.
Identify any areas that need improvement
- Review the agreement carefully to check for any omissions, errors or areas of improvement
- Consult with stakeholders to get their input on any areas that need improvement
- Make sure the language is clear and understandable
- Ensure that all parties have the same level of understanding of the agreement
- Check that the agreement meets the objectives of all involved parties
- How you’ll know when you can check this off your list and move on to the next step: Once all of the areas that need improvement have been identified and addressed, and all parties involved agree, the step is complete.
Renewing or Terminating the Agreement
- Determine the process for renewing or terminating the agreement – this should include a timeline, conditions for renewal and termination, and required legal steps.
- Draft a renewal or termination clause in the agreement and include the wording from the negotiation.
- Review and agree on the renewal or termination clause with all parties involved.
- Once all parties have agreed to the clause, the step is complete.
Determine the process for renewing or terminating the agreement
- Review and analyze existing documents such as existing contracts, laws, and regulations that might impact the renewal or termination of the agreement
- Determine the steps, procedures, and timeline for renewing or terminating the agreement
- Establish the roles and responsibilities of all parties involved in the agreement
- Ensure the process for renewing or terminating the agreement is clearly documented and is in compliance with relevant laws and regulations
You’ll know you have completed this step when you have fully documented and outlined the process for renewing or terminating the agreement.
Establish any conditions that must be met before the agreement can be renewed or terminated
- Consider the time frame of the agreement and the circumstances under which it should be renewed or terminated
- Identify any conditions that must be met in order for the agreement to be renewed or terminated such as mutual agreement or particular milestones met
- Draft language outlining the conditions that must be met before the agreement can be renewed or terminated
- Once you have established the conditions, review and revise the language as needed
- Once you are satisfied with the language, you can move on to the next step.
FAQ
Q: What is the main difference between an international agreement and a domestic agreement?
Asked by Tom on January 8th 2022.
A: Domestic agreements are those that are made between parties within a single legal jurisdiction, while international agreements are those made between parties in different legal jurisdictions. Domestic agreements may be subject to the laws of the jurisdiction in which they were created, while international agreements can be subject to various applicable laws, treaties and conventions. Generally speaking, international agreements tend to be more complex than domestic agreements due to their multi-jurisdictional nature.
Q: What is the most important thing to consider when drafting an international agreement?
Asked by Sarah on April 12th 2022.
A: When drafting an international agreement, one of the most important considerations is ensuring that all parties understand their respective rights and obligations under the agreement. This means that all language should be as clear and concise as possible, and should be tailored to suit the needs of the parties involved. Additionally, it is important to ensure that any applicable laws, treaties and conventions are taken into account when drafting an international agreement, as these may have a significant impact on the terms of the agreement.
Q: What are some common provisions that should be included in an international agreement?
Asked by David on August 4th 2022.
A: Common provisions that should be included in an international agreement include a choice of governing law clause, which specifies which legal system will apply to disputes under the agreement; a dispute resolution clause, which outlines how disputes will be resolved; a mutual termination clause, which specifies how either party can terminate the agreement; and a confidentiality clause, which outlines any confidentiality obligations between the parties. Additionally, it is important to include provisions relating to intellectual property rights and taxation obligations.
Q: How do I make sure my international agreement complies with applicable laws, treaties and conventions?
Asked by Elizabeth on November 29th 2022.
A: When drafting an international agreement, it is important to ensure that all applicable laws, treaties and conventions are taken into account. This means researching any applicable laws in each party’s jurisdiction as well as any relevant treaties or conventions that may apply. Additionally, it is important to seek legal advice from professionals familiar with the relevant laws, treaties and conventions in order to ensure compliance.
Q: What are some ways I can protect my interests when entering into an international agreement?
Asked by John on March 3rd 2022.
A: There are several ways to protect your interests when entering into an international agreement. Firstly, it is important to ensure that all language used in the agreement is clear and concise so that all rights and obligations of each party are understood by everyone involved. Secondly, it is essential to research any applicable laws, treaties or conventions in order to ensure compliance with them. Thirdly, it is advisable to include dispute resolution clauses so that any disputes arising from the agreement can be quickly resolved. Finally, you should also consider obtaining legal advice from professionals familiar with the relevant laws and regulations in order to protect your interests as much as possible.
Q: What types of disputes can arise from an international agreement?
Asked by Michael on July 16th 2022.
A: Disputes between parties involved in an international agreement can arise for a variety of reasons such as failure to comply with terms of the agreement or failure to pay money owed under the terms of the agreement. Additionally, disputes can arise due to misinterpretation or miscommunication of terms or due to changes in circumstances after entering into the agreement that have not been taken into account when drafting it. As such, it is important for parties involved in an international agreement to be aware of potential disputes that could arise from their dealings with one another so they can adequately prepare for them and avoid potential problems later on down the line.
Q: Are there any particular considerations for drafting an international agreement for a technology or software business?
Asked by Robert on October 20th 2022.
A: When drafting an international agreement for a technology or software business, there are several considerations which must be taken into account. Firstly, it is essential that any intellectual property rights related to the technology or software are clearly specified in the agreement so that both parties understand their rights and obligations relating thereto. Additionally, it is important for any applicable warranties or limitations of liability related to use of the technology or software also be addressed within the terms of the agreement so they can be enforced if necessary. Finally, given the global nature of technology businesses today it is also important for parties involved in such agreements to take into account any applicable privacy laws when drafting them so they do not inadvertently violate any regulations regarding user data privacy or security measures when using such technology products or services abroad.
Example dispute
Suing a Company for Breach of International Agreement
- Establish the breach of the agreement, such as failure to deliver goods or services, failure to pay for goods or services, or non-compliance with the terms of the agreement.
- Demonstrate that the plaintiff has been harmed or suffered a loss due to the breach of the agreement.
- Show that the agreement is subject to the laws of a certain country or international agreement.
- Provide evidence that the company was aware of the agreement and failed to adhere to its terms.
- Demonstrate the company’s liability for damages, including lost profits and other costs incurred due to the breach.
- Provide evidence of the actions taken by the plaintiff to mitigate their losses.
- Calculate the damages sought by the plaintiff, including any punitive damages.
- Seek settlement or pursue a judgment through the court system.
Templates available (free to use)
Cross Border Franchise Agreement International
In Depth Gdpr Data Protection Memo To Board Of Directors International Company
International Distribution Contract
International Tax Covenant Purchase Of Non Uk Target Company
Master Franchise Agreement For Exclusive International Expansion
Master Franchise Agreement For Exclusive International Expansion E
Nda For International Acquisitions
Sponsorship Contract International
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