Expert: Leslie - 6/23/2004

Question
Dear Leslie,

I'm the CEO of a small company.  I would like to write a professional legal authorization letter for a person abroad to act as my company's agent there dealing with a couple or more of our clients.  Would you please send me a template and any advice regarding the best way you think this letter should be presented?  Thanks.

Regards,
Sam


Answer
Sam,

The short answer on this request is that you need a lawyer.

Long answer.
You have several issues you need to address in this letter.
-- What do you want this person to do as your agent?
-- Will they handle money? Do they need a letter of credit?
-- Are they an employee? a broker? a purchasing agent? a sales agent?
Each of these questions has to be answered. Additionally...

-- Are you giving them power of attorney to act in a way that they feel is best?
-- What level of trust do you have with this person? How clearly do you have to spell out his/her restrictions?
-- What are the cultural standards in this person's native land? Do they match yours?
-- What, if any, are the laws of the country regarding representation status? From my experience the laws in Europe differ greatly from those in the US, the Far East, and the Middle East and each from the other.

If you trust level with this person is fairly high, then a simple memorandum of agreement spelling out how you see their role and tasks is adequate. This memorandum is not much more than a letter that describes their duties. If the trust level is lower, depending on the country, a legal binding contract is in order. BTW, even a legal binding contract in Mainland China, for instance, is worth toilet paper, so know the local law.

Good luck on your endeavor, Sam. Get a lawyer.

Leslie