Legal Question in International Law in New Jersey

Our company prepaid a Pakistan company for merchandise they failed to ship. Can we recovery money or impose a trade penalty on them assuming they have no us assets and sell their merchandise FOB Pakistan. The owners do regularly visit the US.


Asked on 11/20/12, 10:16 am

1 Answer from Attorneys

John Corbett Corbett Law Firm LLC

Doing business across international boundaries is different as you have found out. Your ability to recover against this company depends on how they are organized (what form of business) and whether they are actually authorized to do business in any State of the United States. Depending on the amount involved, your best best may be to hire a lawyer in Pakistan and sue there.

If the occasion arises again, don't extend credit or prepay. If the transaction is large enough, the company should have a bank in the US willing to handle an irrevocable letter of credit. Otherwise, pay by credit card or with some other means where you have recourse.

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 11/20/12, 1:49 pm


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