A foreign investment contract is one that is a cross border investment wherein the investor and the asset holding company belong to two different countries. The foreign investment contract helps to protect the interests of both the parties by specifying the terms of the contract in a clear manner well in advance.
Sample Foreign Investment Contracts
The foreign investment contract is entered on 6th of May, 2012 between the two parties namely Gordon Inc and Innosa Associates wherein the first party is the investing company and the second company is the asset company. The various clauses of this contract are detailed in the articles given below :-
Article 1 – the investor company will invest the amount of money in pounds which is the accepted currency in the country of the asset company.
Article 2 – the investor company agrees to make the investment within a period of thirty days from the date of this contract through wire transfer to the bank account of the asset company.
Article 3 – the amount transfer shall not be the upfront investment made by the investor company as there is deduction of currency conversion and fess for allocation of investment made by the investor company.
Article 4 – the asset company agrees to adhere to the clause of non-investment in prohibited trades as specified by the foreign investment treaties between both the countries.
Article 5 – the investor company shall be wholly responsible for seeking approval from the government for making foreign investment and does not hold the asset company responsible in any way for the same.
Article 6 – the asset company shall allocate the stocks to the investor company within the time specified in this contract. The asset company liable to be prosecuted for non-issuance of stock certificate to the investing company within thirty days of receipt of investment amount.
Article 7 – all disputes between the two companies belonging to the different countries shall be resolved in the international civil court only.
Signature of both the parties is provided below:
Signature of the Investor: _______________________
Signature of the Asset Company: __________________