Enforcing contracts in Brazil

"Establish Brazil can make quick dispute resolution easy"

 

The best forum and conditions for dispute resolution in Brazil depend on many variables. Allowing us to tailor a contract for your company reduces the risk of future complications.

 

If you need to enforce a contract, our legal team can ensure your greatest chance of quick success.

 

  • Create an easily enforceable contract

Fill out our business contact form with some information regarding the proposed contract and we will arrange a meeting for you with a member of our legal team.

 

  • Enforce an existing contract

If dispute has arisen from a contract you have already entered into and you would like help pursuing a quick and favorable resolution, please send an email to contact@establishbrazil.com with details of the situation and the contract attached, if possible. One of our legal team will then assess your options and contact you to arrange a meeting.

 

Details of Enforcing Contracts in Brazil

Enforcing contracts in Brazil is not as quick or easy as countries such The US or The UK. This is due to factors that are also inherent in other areas of doing business in Brazil such as bureaucracy. The table below shows the average costs, number of procedures and days required for enforcement of a valid sale of goods contract dispute in Brazil between two domestic businesses. For this reason it is important to have a solid contract to prevent the need to resolve contract disputes through the Brazilian court system, contact us and we can recommend an excellent laws firm dedicated to protecting your business and investment.

 

 

 

Enforcing contracts in Brazil (average, June 2009)       

 

Procedures (number)  45       

 

Time (days)  616       

 

Filing and service  41       

 

Trial and judgment  365       

 

Enforcement of judgment  210       

 

Cost (% of claim)* 16.5       

 

Attorney cost (% of claim) 12.6    

 

Arbitration

 

Arbitration clauses are frequently used in contracts between a domestic and a foreign business in Brazil. The number of arbitrations involving Brazilian companies has generally been growing year to year, this is probably due to Brazil’s legislation and judges becoming more arbitration friendly and the strong economic growth Brazil has been experiencing recently. While arbitration is becoming ever more popular, it is important to keep in mind the high costs of arbitration in Brazil. This could render arbitration as an economically unviable way of dispute resolution for contracts involving lower values. Because of this and other factors it is very important to work with a competent, reputable law firm when entering into a contract with a Brazilian company or individual. We work with excellent legal professionals at Establish Brazil; if you would like us to introduce you to a law firm that will protect your interests, please contact us.

 

Enforcement of Arbitration Clauses and Awards

 

Brazil's Arbitration Act states that if an arbitration clause is existent in a contract, in the case that one party refuses to arbitrate, the other party, in accordance with Article 7 of the Act 4 can request a judge to intervene, who has the authority to overrule court jurisdiction and appoint a sole arbitrator to resolve the dispute.

 

The 1996 Arbitration Act also states that an arbitration award has the same validity as a court decision. This means that an award constitutes an "execution instrument."' It can, therefore, be enforced by a court.

 

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