Don’t Quote Me (On Getting Paid)

Related entries: Business Issues, General, Risk & Law, Trading

Here is another one for the “Don’t Quote Me” Series, on a subject close to the hearts of many readers.

David Wolf Of the Silicon Hutong Blog (h/t China Law Blog), reminds us that a deal is never safe “until the gear is delivered, in place, tested, and working. Until then, all bets are off.” He goes on to quote his mentor in China, Corb Donohue:

    “the longest distance between any two points is the distance between the high-five and the check”.

That rings a lot of bells with me and, I suspect, many others. It is very true that payment risk is a concern in China (especially if due diligence has not been done in advance), and that contract signings are, in reality, often just another step in the negotiation process. So, hold that high-five until the money is in the bank!

Leave a Reply

You must be logged in to post a comment.