Legal Question in International Law in Florida

Can foreign company use address of US business as a contact?

There's a company in Brazil that doesn't have presence in US. We have a registered company in US which does business with the other comapnies in the world including the brazillian company. Now the Brazillian company wants to use our company address in US as their contact information in US. What would be the legal consequences to us of this deal?


Asked on 7/23/04, 3:54 pm

2 Answers from Attorneys

Richard Vaughan Law Offices of Richard Vaughan, Esq.

Re: Can foreign company use address of US business as a contact?

If you proceed, proceed with great caution. Reason: by lending your name to a foreign entity, you may be taking on the liability for the actions and failures to act of that foreign corporation.

Oftentimes, in the event that they have wronged some American client, the foreign entity will be beyond the jurisdiction of a US court, leaving you as the local, deep pockets from whom they will seek a remedy.

That being said, **know** who you are dealing with. Establish contacts with a trustworthy lawyer who is local to the foreign company and is authorized to practice in that locality. You may also wish to establish a contact with an internationally-known bank, local to the headquarters of the foreign corporation. You may seek additional information through the US Embassy and the International Chamber of Commerce.

Fraud is a very big problem in dealing with Third World Countries and Eastern Europe. Transparency International is starting point for background information.

Otherwise, I concur with the comments from the other attorney insofar as getting the relationship established as binding, legal and safe. You **do** want to insulate yourself from any wrongdoing on the foreign companies' part and also see what sort of liability you may be taking on in that foreign country. In some countries, the laws of agency do not allow the amount of standoff from liability afforded by US law.

Good luck.

International Chamber of Commerce

http://www.iccwbo.org/

US & International Cbambers of Commerce

http://www.uschamber.com/international/default.htm

International Economics Links

http://www.lib.byu.edu/business/research/guides/country/

Transparency International

http://www.transparency.org/

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Answered on 7/30/04, 11:23 am
Tonia Troutwine, Esquire - Troutwine Law Group. LLC

Re: Can foreign company use address of US business as a contact?

Whatever deal the parties make, the US Company will want to put it in writing and make sure the Brazilian company indemnifies you for any liabilities and agrees to submit to US jurisdiction. The US Company will need a Partnership Agreement defining the terms of the relationship with the Brazilian company.

The Brazilian company and the US company will need to comply with all US, Brazilian and International laws and regulations for doing business between the two countries.

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Answered on 7/24/04, 11:18 am


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