Business planning, formation and agreements

When one conceives of a Multinational Enterprise, it will be wise to be mindful of the factors one can control, as well as those which one cannot. 

Of the factors one cannot control (easily), they include international and local laws, statutes, regulations, and policies. These factors are government mandates and are typically impossible to alter with impunity. Despite such, one can do extremely well by familiarizing oneself with said government mandates so as to anticipate its pros and cons in relation to a particular business and/or market. 

Of the factors one can (and should) control, they include prudent planning, careful formation, and meticulous drafting of agreements. 

The form which a business entity assumes will often result in significant consequences in various areas of its functions and operations. Concepts ranging from basic concepts such as ownership and liabilities, to complex concepts such as profit sharing, indemnities and arbitration venue, they must all be addressed. Fortunately, these areas can all be addressed through written agreements. 

An agreement is a living document which can be shaped fully by the parties which it binds. Although the basic elements of any agreement include offer, acceptance, and consideration, a wealth of factors come into play to complete the details of that understanding. 

Standard, boilerplate contracts are easily accessible to anyone. But it takes a knowledgeable and experienced attorney to point out how these agreements and clauses will work together in optimizing benefits, liabilities, tax positions and other consequences. 

Specific industries almost always include additional nuances and terms of art which are often only relevant to that particular type of business. These unique facets of contractual terms pertain to trade usage, course of dealing, and typically vary greatly from jurisdiction to jurisdiction.


       DEChien Law