International Law: Contracts?

[Solm]

My friends recently confirmed an apartment rental in Italy, we live in the United States. The company required that all the money be paid up in front. Of course they made sure it was legit. It was not a cheap. They signed a contract, to assure of everything. However, they are in two different nations (Italy and the US), let's say the apartment owners stick them in a rotten beat-up apartment or none at all, and not give my friends anything. I know if that happened in the United States, my friends would just sue the apartment owners for breech of contract. However, since they are of two different nationalities, how would it work? Could my friends get their money back? Or would they be lost? Could they sue them through the Italian Justice System? Can a non-civlian sue in a foreign nation?

So, I ask the most knowledgeable NSG.

[Neu Leonstein]

That depends on what the contract itself said. They must have a clause stating the legal mechanisms under which disputes will be settled, ie what mediation mechanisms, what court of arbitration and, if necessary, which court system. That could be Italy, the US, or Togo. There are no rules there other than what both sides agree upon.

I hope your friends read the contract properly, because choosing dispute resolution mechanisms is usually an important negotiation point in international business contracts.

Yay, that is the first time I have ever used my IB Management degree for anything!

[Solm]

That depends on what the contract itself said. They must have a clause stating the legal mechanisms under which disputes will be settled, ie what mediation mechanisms, what court of arbitration and, if necessary, which court system. That could be Italy, the US, or Togo. There are no rules there other than what both sides agree upon.

I hope your friends read the contract properly, because choosing dispute resolution mechanisms is usually an important negotiation point in international business contracts.

Yay, that is the first time I have ever used my IB Management degree for anything!

Ha! See You Never Know When You Can Use those stuff!

But, even if they say it will be dissolved in Italy, the contract can't change law, what if Italian law says only citizens can sue (which it probably does), then my friends, even though the contract said so, would have no legal power. And what if it said it would be settled in the US, would Italy really deport their own citizen to another nation?

[Neu Leonstein]

But, even if they say it will be dissolved in Italy, the contract can't change law, what if Italian law says only citizens can sue (which it probably does), then my friends, even though the contract said so, would have no legal power. And what if it said it would be settled in the US, would Italy really deport their own citizen to another nation?

Why should the law say that? They have a contract, under Italian law, which they argue is broken and needs resolving by Italian courts, as would be stated in the contract. Whether or not a plaintiff happens to be Italian or not is irrelevant. As I said, if the contract said so, they as Americans could sue Italians for breach of contract in Togo. And that would still be okay.

[Nadkor]

I would suggest that there are three ways of working out what jurisdiction the contract falls under:

1) What country was the contract concluded in,
2) Did the contract cite any legislation, or failing both of those
2) Did the contract state what jurisdiction it was concluded under (i.e. what countries laws it was under and, therefore, what country it was to be mediated in should a dispute arise; this one is a long shot, it can apply in commercial contracts, but I imagine the landlord wasn't anticipating that when he drew up the contract)?

[Pope Joan]

Jurisdiction of a case ordinarily follows the venue which has the clearest connection to the parties and the subject matter.

A couple in New Hampshire were able to avoid a lease in Aruba, in a trial held in the US; SCOTUS said that ordinarily there would not have been proper jurisdiction here, but the defendant Caribbean leasing firm had conducted extensive business here and so placed itself under our jurisdiction.

[Psychotic Mongooses]

Not a lot of info to go on, here's my 2 cents.

My friends recently confirmed an apartment rental in Italy, we live in the United States. The company required that all the money be paid up in front

That's highly unusual in itself. I'd check Italian rental law to see if that's even allowed/legal.

Of course they made sure it was legit. It was not a cheap. They signed a contract, to assure of everything.

Just because it's a contract doesn't mean it's legit.

However, they are in two different nations (Italy and the US), let's say the apartment owners stick them in a rotten beat-up apartment or none at all, and not give my friends anything. I know if that happened in the United States, my friends would just sue the apartment owners for breech of contract. However, since they are of two different nationalities, how would it work? Could my friends get their money back? Or would they be lost? Could they sue them through the Italian Justice System? Can a non-civlian sue in a foreign nation?

As far as I know yes.
/not a 'contract' lawyer, but still did law

Nadkor's seems the best advice so far to me.

[Risottia]

My friends recently confirmed an apartment rental in Italy, we live in the United States. The company required that all the money be paid up in front. Of course they made sure it was legit. It was not a cheap. They signed a contract, to assure of everything. However, they are in two different nations (Italy and the US), let's say the apartment owners stick them in a rotten beat-up apartment or none at all, and not give my friends anything. I know if that happened in the United States, my friends would just sue the apartment owners for breech of contract. However, since they are of two different nationalities, how would it work? Could my friends get their money back? Or would they be lost? Could they sue them through the Italian Justice System? Can a non-civlian sue in a foreign nation?
So, I ask the most knowledgeable NSG.

Is the company Italian? If it is, I'm quite sure you can sue it under Italian law. Anyway, here in Italy, at the end of a contract, you'll find generally a standard line stating what court is to be referred to in case of controversy. ("Il tribunale di -insert city here- è competente per le controversie / le violazioni al presente contratto").

"Non civilian"? You mean your friends are military? Or do you mean they're not citizens of Italy?
Anyway, civil rights in Italy (like the right to justice) apply to any person that is (legally) on Italian territory, regardless of citizenship, or that has some (lawful) business in Italy. Even if they're foreign military of course.

Anyway, if they suspect, upon their arrival to their new place in Italy, a breech of contract, the best thing they can do is to call either the Carabinieri (telephone 112) or the Guardia di Finanza (telephone 117), and the US Embassy in Rome. Skip the first part if they cannot speak at least a bit of Italian, though.

[Risottia]

Just because it's a contract doesn't mean it's legit.

In Italy, house rental contracts must be verified by a civil law notary ("notaio") and/or by the local municipality.
If a contract has non-legitimate parts in it, two things can happen:
1.for minor violations to laws about contracts, the non-legitimate parts are considered automatically invalid and hence non-binding
2.for major violations, the contract itself is considered invalid, and any sum paid as consequence of that contract must be refunded - this doesn't take away, of course, the right to sue for fraud.

[Mean Feat]

Just because it's a contract doesn't mean it's legit.

In Italy, house rental contracts must be verified by a civil law notary ("notaio") and/or by the local municipality.
If a contract has non-legitimate parts in it, two things can happen:
1.for minor violations to laws about contracts, the non-legitimate parts are considered automatically invalid and hence non-binding
2.for major violations, the contract itself is considered invalid, and any sum paid as consequence of that contract must be refunded - this doesn't take away, of course, the right to sue for fraud.

That would be a good result. Live in the house while the matter is settled in court, then get a refund on all the rent. Good times !