Question

If a business person get proposals from different counties, what concerns should that person have with doing business in other countries? What contract provisions need to be included in any business contract in order to protect their business?

Answer 1

Doing business in other countries involves a lot of understanding of the other country’s culture both business and non business. It also requires an understanding of the language of doing business as well as the economic and legal implications of doing business. There are very important statues and import export trade regulations that need to be adhered to in case of doing business in other countries .Tax implications and transfer pricing regulations would creep in while doing business in other countries. Hence a person should first weigh the consequences of understanding the business implications before signing the contract with the three foreign parties

I feel that a person should trade in territory that he knows and both he and the supplier are bound by common law. In-country manufacturer will be the best choice as negligence can be dealt with according to the laws of torts .An individual can protect himself by bedewing up a contract where non performance and delays and pricing agreements are clearly stated signed and accepted by both parties to the contract.

If a person thinks of doing business with either of the foreign parties, she has to ensure that the Letter of Credit is drawn up properly and the terms of the contract and non performance liability is fixed as per jurisdiction and law .