01A contract in English is valid, but it will need Portuguese
Brazilian law does not require private contracts to be written in Portuguese, so an English contract binds both parties. To produce legal effects before Brazilian authorities, however, foreign language documents must be translated into Portuguese (Civil Code, art. 224), and courts require a translation by a sworn translator (Code of Civil Procedure, art. 192). A bilingual contract prepared from the start avoids delay and disputes about translation.
02Choosing foreign law is not always respected
Under the Law of Introduction to the Norms of Brazilian Law (LINDB, art. 9), obligations are governed by the law of the country where they were constituted, and courts are cautious about party autonomy on governing law. In arbitration, the parties can choose the applicable rules of law freely (Arbitration Act, art. 2). That is one reason many cross border contracts with Brazilian parties use arbitration.
03Foreign forum clauses and arbitration
Since 2016, article 25 of the Code of Civil Procedure prevents Brazilian courts from hearing a case when an international contract sets an exclusive foreign forum and the defendant raises it. A foreign judgment or arbitral award still needs recognition by the Superior Court of Justice (STJ) before enforcement in Brazil. Brazil is a party to the New York Convention, which makes foreign awards a predictable route.
04E-signatures and enforceable contracts
Electronic signatures are valid in Brazil (Provisional Measure 2,200-2/2001 and Law 14,063/2020), including platforms like DocuSign when the parties accept them. Since Law 14,620/2023 added paragraph 4 to article 784 of the Code of Civil Procedure, an electronically signed contract can qualify as an enforceable instrument without the two witnesses that paper contracts need, as long as the signature provider attests the document's integrity. That allows direct collection proceedings instead of a full lawsuit.
05Consumer contracts follow different rules
If your counterparty is a Brazilian consumer, the Consumer Defense Code applies. Clauses that waive the consumer's rights or impose a foreign forum are generally void, and the consumer can sue at home. For online services, the Brazilian Internet Act also voids adhesion clauses that do not offer a Brazilian forum for services provided in Brazil.
06Data, people and taxes sit next to the contract
Contracts involving personal data need LGPD processing terms and, for transfers to countries other than the EU, the Brazilian standard contractual clauses. Contracts with individuals in Brazil carry employment risk. Cross border payments carry withholding taxes and exchange rules, which we flag so your tax advisor can confirm the numbers.
07Penalty clauses are reviewed by the judge
Common law liquidated damages and Brazilian penalty clauses (cláusula penal) look alike but behave differently. Under the Civil Code, the penalty cannot exceed the value of the main obligation (art. 412), and the judge must reduce it equitably when the obligation was partly performed or the amount is manifestly excessive (art. 413). Damages beyond the penalty can only be claimed if the contract says so (art. 416). Caps, penalties and indemnities should be written with those rules in mind.
08Termination and the partner's investments
Contracts for an indefinite term can be terminated by notice, but article 473 of the Civil Code suspends the effect of the notice when the other party made considerable investments that have not had time to pay off. Distribution, reseller and partnership agreements with Brazilian companies should therefore set a clear term, notice periods and what happens to stock, customers and brand use at the end.
09Documents signed abroad and the apostille
Brazil is a party to the Hague Apostille Convention since 2016. Public documents from other member countries, such as certificates of incorporation or notarized powers of attorney, are accepted in Brazil with an apostille instead of consular legalization, plus a sworn translation into Portuguese. Planning this early avoids delays when a Brazilian bank, registry or court asks for proof of your company's existence and signatory powers.