I am looking to sign a contract with a Italian company, and have seen a draft of the contract that they propose. All looks fine except for a clause which allows than to terminate the contract for any reason. This clause gives me concern, as I will be investing to promote this company's goods, and worry about being left high and dry. Is this typical for Italian contracts?
If you're investing, you don't want that clause. You want only "for cause" termination, with the things that rise to that level of being "for cause" clearly defined. The whole reason of the contract is to commit for an exchange.
That's pretty much what I thought it should be. Allowing them to terminate for no reason does not make it much of a contract. Is it allowable to sign the contract with that clause stricken out and initialed?
You can, but I would suggest a more complete revision to protect yourself. But hey, it's your money. BTW, make sure that there is jurisdiction for you in NY, NJ or somewhere accessible for you. Litigating against foreigners is hard enough as it is, you don't want to have to get lawyers in Europe if you don't have to. Do they have any operations or companies here?
Good luck enforcing the contract with a company not in the U.S. I don't sign contracts anymore. I got burned. Start small with the guy. If things work then keep going.
Hell it isn't worth going to court in New York unless millions are at stake and even then you may be left with cab fare only.
