Is it difficult to cancel a contract with a foreign sales representative?
The answer depends upon the laws of the country in which the cancellation takes place. In many countries, a representation contract can be terminated relatively easily. However, in other countries, it can be very costly and time-consuming to sever a business relationship with an agent or distributor. You could be required by local law to compensate the representative for a portion of the original investment, promotional money spent in advance to secure future sales, and the projected income they would have earned during the remaining period of the contract. Because business customs and laws vary in different countries, it is important you present your representation contracts to an international attorney who is knowledgeable of the laws and regulations of the country in which you will be selling your products. While doing so will be more expensive in the initial stages, it is a sound business investment which could save money fighting litigation in foreign courts.
Related Questions
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- How often is a Legal Service Contract Sales Representative required to renew its registration?
- Is it difficult to cancel a contract with a foreign sales representative?
