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How to handle Two partners in two countries

Hi,

We are 2 partners, one in Canada, one in France, and we are ready to create a new web service. How would you handle that on the legal and financial sides ? Would you sign a kind of paper ensuring that both of us get half of the possible revenues and share equally the expenses ? How would it protect us in front of a court (I'm not paranoiac and I know my partner very well but can we swear of what can happen in the long term?). How would revenues be distributed ? Would it be managed by one of us and wire transferred to the second one ?

Maybe someone has already been in this situation and your experience will be welcome.

Thank you
Anon for now
Thursday, February 22, 2007
 
 
There are a number of possible solutions, and it's great that you're considering these issues in advance. 

One solution is that you involve a trusted third party to facilitate the financial transactions (ie. collect fees from licensing transactions and then remit your shares to you by cheque, wire transfer, PayPal, etc). 

Such an arrangement can ensure that neither you nor your partner are in a position to be accused of a breach of trust involving the other's payments.  If you become concerned about an issue involving the third party, both you and your partner can resolve the issue together, on the "same side" (so to speak).

Choice-of-law and choice-of-forum clauses (ie. selecting the law and courts of a particular place) can be used in your contract to anticipate possible litigation in the future.  You may also wish to consider an arbitration clause.  These must be considered specifically in light of the cross-border nature of your potential agreement.

I have dealt with similar cross-border issues in a number of capacities in the past; please feel free to email me if you're interested in more specific details.

Best regards,

Chris
Chris Knight Send private email
Thursday, February 22, 2007
 
 
Thank you Chris. This is some food for thought. We still have time to think about it but surely we need something very clear between us.
Anon for now
Friday, February 23, 2007
 
 
Joint bank account? Power of attorney? Both be clients of the same lawyer?
Christopher Wells Send private email
Saturday, February 24, 2007
 
 

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