A French firm wants me to deliver 10,000 units of my video games to each country (Denmark, Saudi Arabia, Venezuela, Taiwan, and France) and I was wondering if anyone knows what terms should be put in the contract, for example, what law should I use, what should be the shipping terms, the payment terms, what currency should I make them use, and any other thing that can become a problem if it is not properly addressed. Can anyone help me out?
2006-11-20 02:30:52 · 3 answers · asked by Anonymous in Business & Finance ➔ Corporations
It is normal for the contract to be written under the law of the supplier country. If this French company is multi national it should have no problem working within US law. I know that it costs money but the best thing you can do is get a contract drawn up by a firm of commercial lawyers. It is so much safer than finding out you have broken some obscure Taiwanese law.
Currency should be US Dollars or Euros. Payment should be at least partially upfront, you might also want to consider Escrow.
2006-11-21 07:35:24 · answer #1 · answered by popeleo5th 5 · 0⤊ 1⤋
You should use the prevailing laws and customs of the country where the goods are manufactured. You will have more legal leverage in your home country than in a foreign country. All sales can also be governed in your home currency, which will help you align your market prices against the same currency used to produce and market the product. You may be a little more lenient on payment terms, since your goods may take longer to market, but that shouldn't really affect your business to much. In today's global marketplace, transactions are made very quickly by electronic transfer. Consider providing a discount for prompt payment.
2006-11-20 08:54:57 · answer #2 · answered by wickedwit 2 · 0⤊ 0⤋
Try doing your own homework - you'll remember far more that way.
2016-05-21 22:17:12 · answer #3 · answered by Anonymous · 0⤊ 0⤋