LAW AND CONTRACTS

International Business Law and Contracts

International Business Law and Contracts

Introduction

In this paper, the discussion would be based on a clothes-trading company that I plan to open along with my friends. The company would be registered in India, and I would serve as an in charge of negotiating sales contracts with companies from Australia and Brazil.

Best Form of Business Organization

There are certain considerations that have to be considered when deciding the form of business. Some of the main considerations are mentioned below.

1.Owner's liability for the firm's debts

2.Ease and cost of forming the business

3.Ability to raise funds (sources of capital)

4.Taxes

5.Management and control

6.Ability to attract employees

7.Flexibility in choosing activities

8.Lifecycle and continuity

9.Transferability of ownership

The best form of business organization for clothes trading company is partnership initially. However, we can move towards a corporation in the future after the business is established properly.

Arguments

The reason why sole proprietorships cannot be opted for by the clothes-trading business is because it will be started by more than one person. However, sole proprietorship is a form of business that is when there is only one owner of the business. Since opening up a corporation is not an easy task in the initial stages, it is a wise idea to opt for partnership. Partnership is easy to form, and capital is also available easily to form partnerships. Flexibility and freedom from control by the government are also an advantage. In partnerships, talents and capital are combined which enhances business operation. Moreover, since the clothes trading business will be started between friends, trust can be built easily and mutual cooperation can develop. This would create a powerful incentive between the partners and would result in success of the clothes-trading company.

Key points of Negotiation

Rules and Regulations

Different rules and regulations that are formulated in law are for our own safety and their ever changing and updating nature makes them quite a controversial issue. Before indulging into any dealing with Australia and Brazil, it is vital for the clothes-trading company to consider the legal implications properly in order to avoid any serious circumstances. For instance, breaking rules of Brazil and Australia can lead to serious consequence such as payment of fines and the country might stop trading with the Indian clothes trading company. In Latin America, Brazil is the 9th largest economy and a high growth rate of 3% per annum. Therefore, it is important o get hold of the market because of which rules should be followed.

Documentation

Proper documentation is also very imperative. Law is developing day by day and awareness is increasing the requirement of formal teaching for the basic law is important for today's era (Goode, 2004). Emphasis is laid by the Brazilians on finishing the tasks rather than setting specific schedules therefore, the documentation must be done in the initial stages.

Important Contractual Clauses

The most important contractual clauses include the following.

1.Parties - Details of name and address of the parties.

2.Definitions - Important defined terms in the contract.

3.Payment - How much and mode of payment to be ...