If you are considering entering into a business relationship with a foreign company, it may be beneficial to become familiar with the Department of Commerce’s dispute avoidance guidelines. With their advice and the help of an experienced business law attorney, you may be able to avoid a lengthy and costly litigation.
Many American companies conduct business in China and other countries. When involved in a business relationship with a foreign country, it is imperative to have a comprehensive dispute resolution plan in place, as these disputes may be handled quite a bit differently than those of domestic businesses. Fortunately, the department of commerce works with experienced officials to outline recommendations for dispute avoidance when working with foreign companies. While many of these recommendations should be common sense, it may be surprising how many American companies fail to put in the proper amount of planning before conducting business in a foreign country.
One of the most important and simple ways American companies can avoid disputes with foreign businesses is to have a clear and comprehensive contract. Outlining the exact terms of performance standards, time frames and payments can help American business owners lay the foundation for a dispute-free business relationship.
Just as not all contracts are created equal, not all business partners are either. The DOC suggests doing your due diligence when choosing a company to conduct business with. If, after careful examination and a thorough reliability and dependability background check, your potential partner is still an attractive option, it may be safe to proceed. Delving into a company’s professional background may also help you search for and realize issues before they become costly problems.
If you are considering conducting business with a foreign company, it may be well worth your time to become familiar with the DOC’s recommendations and to discuss your considerations with an experienced business law attorney. Between the DOC’s official guidelines and a lawyer’s experience, you may be better prepared for foreign business.