software outsourcing

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Thursday, February 16, 2006

Offshore Outsourcing to India and Legal Aspects

If you are planning for Offshore Outsourcing to India and want to know the legal issues of the country this article might be useful to you in one or more ways. Here are some of the legal aspects/issues are discussed related to overseas transactions with India.

International Contracts and Governance of Laws

When any contract crosses national boundaries, the national Legal Regime on any country becomes insufficient to fight with the situation. In such overseas deals where two parties are involved, in that case two systems of law impose upon the transaction and rules of Private International Law takes place. The best way is to choose a particular law to govern the overseas deals which is known as Proper Law of the Contract. The courts have held that this law is the one which the parties have impliedly chosen for them by reason of its closet and most real connection.

Laws of India for Intellectual Property

Laws in the country are always undergoing alterations, according to the requirements of the changing times and in unison with the practices of International Laws for Offshore Outsourcing to India. Country has also ratified the World Trade Organization (WTO) Agreement that came into the force on 1st January 1995 and has become a party to the Agreement on Trade Related Intellectuals Property Rights. Country has affected many different legislative changed in copyrights, designs, patents, trademarks, and on other issues for the Offshore Outsourcing to India.

Overseas parties are free to select the law which would govern their contract

For Offshore Outsourcing to India, under the law of the country, parties are free to specify their terms of contract and stipulate the law by which their contract is to be governed while Outsourcing to India. Section 13, 15 and 44A of the ICPC (India Civil Procedure Code) and Section 41 of the Indian Evidence Act are governing the definiteness and enforcement of foreign judgments in the country regarding such overseas deals.

Courts of the country uphold choice of law

For Offshore Outsourcing to India when the parties in the contract define selection of law, the courts have always recognized such selection of proper law. However, where parties have selected any law other than the country’s law, the selection of law have always been upheld by the courts of India.

Offshore Outsourcing India

Some Important guidelines to follow while entering into any International Contracts, not only for the Offshore Outsourcing to India.

Parties enter into Overseas Contracts, as they found them always profitable. The following aspects should be taken into the consideration while entering into Overseas Contracts that would help the interests of all the parties.

1) Express choice of Law that governs the contract.
2) Proper law for enforcement should be reorganized by the country whose law is selected.
3) If the Arbitration is selected as a method of dispute resolution, the place with other aspects must be properly determined.
4) If a contract is sign in the country that is different from one whose law is selected, formal requirements of the place of the contract should be fulfilled in all respects.
5) In Offshore Outsourcing to India, if selected law is Indian law and judgment of the country is to be enforced on foreign territory, make it sure that the overseas territory has similar law of the lines of Section 44A of ICPC.

For Offshore Outsourcing to India, these all are some of the important tips to be taken care off. These all also might be useful while dealing with any of the overseas country.