Foreign Agent

[JB1]

I have been in communication for the last month with an individual representing a Chinese company - he is looking to establish himself as our middleman in China. Yesterday he informs me that he has been presenting himself as an agent of my company.

My immediate reaction is to tell him to stop this, but I think that a more formal arrangement would be better. Thoughts?

[Freelancier]

How did you find this individual/company? What's your plan to test to see if everything this individual says is true?

[JB1]

This individual/company found us - and given the niche` industry we are in, he has a good knowledge of what we are doing and asks the right questions.


In terms of verifying him/his company, before any deal goes through, I would think we would have direct contact with the customer and ensure that the project boundaries are well understood. Also, in the past, we have typically required 50% up front and 50% in escrow before shipment. It has worked well for us in the past.

[Snowleaf]

I don't know what money we are talking about here, but if it's not huge amounts it might also be possible to ask for 100% up front for the first deal and if they agree to that you know they are serious and for the following deals go back to 50/50.

[Freelancier]

I think your idea of a more formal arrangement is likely the right direction. However, note that you're getting into the realm of international law and that gets messy, especially when one of the countries isn't quite up to developed-world contract protections. In other words, the contract may only be a piece of paper when it comes down to it unless the agent has assets in a country you can seize if something goes wrong.