Legal Question in Business Law in California

We are a small company in Hong Kong. Two years ago, we made a contract with a US company to act as their branch office in Shenzhen, China to promote their product to a big customer in Shenzhen. According to the contract, we received US$2000 every month for the past 2 years to cover part of our expenses. Besides, we will get 4% commission on every sales once we made deal with the big company in Shenzhen. However, this US company was took over by a listed company in US. After that, they want to separate from us as this listed company already have their sales network in Shenzhen and they don't need us anymore. According to the contract, they only need to give us 30 days notice and they don't need to compensate us. However, we have spent nearly two years time and get through most of the product testing procedure from the customer. We only charge minimum fees from this US company for the past two years because we believe that we can get commission from them eventually.

Now, due to the sold out of their company, they have to separate from us. Please advise whether we can claim them for our loss or the actual expenses that we have for the past 2 years? What can we do as we are just a small company in Hong Kong? Due to this business, we have already spend a lot of money and we can't afford even little more!


Asked on 3/16/10, 4:34 am

2 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Whatever the terms of your written contract are, they define your rights and remedies. If it could be canceled on 30 day notice without cause, and if you have been paid the agreed monthly amounts, then you would now be entitled only to your outstanding invoices for commissions due up to the point of cancellation. If no sales were made and no commissions are due, sorry.

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Answered on 3/21/10, 4:04 pm
Daniel Bakondi The Law Office of Daniel Bakondi

Send me an email and let me know how much you believe your commission should be worth.

Best,

Daniel Bakondi, Esq.

[email protected]

415-450-0424

The Law Office of Daniel Bakondi

870 Market Street, Suite 1161

San Francisco CA 94102

www.danielbakondi.com

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Answered on 3/29/10, 4:36 pm


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