Most contract disputes are settled by negotiation between the parties. However, sometimes this is not possible and you must resort to legal action.
Dispute resolution by legal action can be a problem with international transactions for a number of reasons. If you have a claim against a foreign goods or services provider and your contract does not provide for alternative dispute resolution it may be necessary to file a claim in a foreign court that has jurisdiction over your trade partner. This may subject you to unfamiliar legal and procedural rules and you may also incur considerable costs in retaining local legal counsel and transporting witnesses to the foreign forum. In addition, the defendant in the case may lodge counterclaims against you based on unfamiliar foreign laws. Moreover, even if you are ultimately successful, in some countries it may take many years for courts to reach a final determination. And even after obtaining a judgment, enforcement of the judgment may be a problem.
For all the above reasons, the inclusion of alternative dispute resolution provisions in international contracts is highly recommended. This Part discussed the court system and alternative dispute resolution in Kosovo.