Brazil contract law and negotiation tactics

What should you know about Brazilian business culture?

Brazilians are essentially a warm and social race that likes to take things easy. Though business meetings, especially those held in the business districts are thorough, time is not an issue. Brazilians are family and relationship-oriented, so it’s imperative to establish a personal connection prior to discussing business. Brazilians are tactful and clever in the professional space, making them difficult to read. Knowledge about their country and culture, beyond soccer and women, is a good way to impress them and break the ice, as they dislike stereotypes. They all speak in Portuguese though their backgrounds are varied. Brazilians are diplomatic in nature and expect the same from you, especially when you speak about their country.

What are the right negotiation tactics in Brazil?

  • Use an intermediary for the initial introduction
  • Research well about the country and its people before you begin a business meeting
  • Initiate vital negotiations directly with decision makers. Likewise, send senior management to negotiate with a Brazilian as they respect hierarchy
  • Older Brazilians will be more rigid than younger ones so expect accordingly
  • Win their trust as long term partners than casual ones
  • Avoid conflict as Brazilians dislike confrontations
  • Be enthusiastic but avoid being loud
  • Don’t worry about time, keep extra hours for this one

What is the contract worth in Brazil?

Post a successful meeting, it is normal to shake on it and allow the paperwork to be done later. The written contract is usually a lengthy one including all possible eventualities but the crux of your business association with a Brazilian lies in your personal commitment. Hire a local lawyer to decipher the home laws to you. Also include a lawyer only once the spoken word is given. Brazilians take their contracts seriously but are not averse to changes depending on situations. They expect the same from you so be prepared.

Brazil allows contracts to be in any language, as long as both parties can understand them and certain rules are followed. The pace of every negotiation depends on the place or city where it is held.

What are pricing policy, pressure and restraints in Brazil?

Other than production and marketing costs, you need to pay attention to the exchange rate, your competitors, as well as the macro-economy.

What is the arbitration and litigation Processes in Brazil?

Brazil is a civil law nation.

Litigation in state and federal courts is the most common way to resolve large commercial disputes in Brazil. The process is based on the guidelines mentioned in the Federal constitution and can be lengthy and complicated.

Commercial arbitration, on the other hand, is quicker, more private and involves neutral arbitrators so is often preferred.

Be especially careful with matters related to Brazilian labour and employment. Also, ensure the company you are contracting with in Brazil, is in compliance with the FCPA (anti-corruption) and other such laws.

To secure a successful deal with a Brazilian involves striking a good personal relationship and awareness of the local contractual process and nuances.

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