The cultural differences and the difference between the local and international laws are the influential factors involved in the international business partnerships. Confusing ethical values, different legislations, and conflicts between various interests are the factors which are to be taken into serious consideration. When a US company enters in an agreement with a company located in another country, the legal enforceability of the terms of the contract must be ensured, with a foresight on any future eventualities.
Apart from the legal aspects, there are various important factors related to the difference in ethical and cultural aspects between the two different societies. In the present case, CadMex pharma, the Florida based US pharmaceutical company is entering in an agreement with a Candore based biotechnology company Gentura. Candore is a country ruled by president Gwendoz, a dictator. Therefore the political and economic environment in that country is not as transparent as that of the US.
CadMex is a company with a global reach having business operations in about 127 countries. For the contract between CadMex and Gentura the United States law must be made applicable. The companies from the member countries of WTO can opt for WTO as the forum for dispute settlement. However taking into consideration of the politically fragile situation in Candore, it is advisable to have a US based dispute settlement forum.
Global marketing rights for Proprez, the medicine developed by Gentura will be given to CadMex. In return the Gentura will get technology license from CadMex. Contract for international sale of goods (CISG) can be considered as the best choice of law for CadMex, because the condorean regulations are relaxed only in the recent past after them entering into WTO very recently. From the point of view of CadMex, referring the cases to the US courts is considered preferable.
But in this regard the agreement of Gentura must be obtained. In case of breach of contract it is better to get compensated through financial settlement. While two companies from different countries are entering into a contractual relationship, the international legal and ethical issues must be addressed carefully. Along with the legal issues, several aspects regarding the involvement of social, economic, political, religious, and cultural factors must also be taken into serious consideration.
Courtney from Study Moose
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