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HOME > Blog > Oversea sales blog > 【Echo Tech】 Why do we make business contract with oversea companies?

【Echo Tech】 Why do we make business contract with oversea companies?

When something trouble happens between oversea companies, how do you settle the problem?

・Client doesn’t pay for any charge.
・Client used your company’s copyright, patent, product design without noticing as their original brand.
・Client resells cheaper than decided price.
・Client tells or gives non-disclosure information to third person.

パズルが組み合わさらない人たちのイラスト(ビジネス)

These are major problems in oversea business. Of course there are more other problems included financial, any transactions, big to small scale problems. The more problem become complicate, it will be hard to settle. Language, each country’s rule, culture, time difference, each of those will become impediment, and it might lead you to unwilling result.

..and that’s why we need a contract before we start business with oversea companies.

Let’s see how do contract saves you from such troubles.

What is contract?

Contract exists for a “preservation of base rule”.

Before you do business with oversea companies, basic rule must be decided beforehand.
Transaction of receiving order to shipping product, rule of after they resold, reselling area, non-disclosure agreement, those are necessary column in contract. Otherwise, bad client might transact all procedure that works to their favor, and you might lose vast profit.

ルールブックのイラスト

Even if you discussed about rule with your client orally, it doesn’t hold any meaning unless you preserve as document. Such a rule might be forget, and will be easily violate, and changes each time when trouble happens. To decide and “preserve” a basic rule, this could say that most important thing for oversea business.

When trouble happens in oversea business!

When your client violate something rules written on contract, you could claim that they are breaking rule with pointing that term. Even if they didn’t respond to your claim, if your client’s country were member country of “Convention on the Recognition and Enforcement of Foreign Arbitral Awards”, you hold a right to attach their property.

To avoid troubles widely, it’s important to decide as many as rules beforehand.

 

If you have any questions or comments, please send us message here!

worldinfo@us-dolphin.co.jp

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