please see the attached file.

Disagreements are very common in international trade. Whenever a company enters into a contract with an international entity, it must ensure that the contract is legally enforceable in order to protect the company's interest.

This simulation covers such international problems faced by a hypothetical company, CadMex Pharma based in Tampa Florida, which partners with another hypothetical company, Gentura based in a small developing country, Candore.

In March 2012 Candore was in the midst of a rare viral epidemic. Viroblax is one of the drugs used in the treatment of this epidemic and Gentura is under severe pressure from the government to subsidize Viroblax. It is for this reason that Gentura is in breach of its contract with Cad Mex Pharma. Cadmex gave Gentura the rights to Viroblax which is a drug used in the treatment of severe viral infections however subsidized production of Viroblax would violate the payment terms of the contract between Gentura and Cadmex.

Analysis of selecting the proper forum and venue for dispute resolution

Choice of Law - Candorean regulations for technology import contracts (CRTIC).
The advantage of Candorean regulations (CTRIC) over Contracts for international sale of goods (CISG) is that CRTIC is enforceable as it is a local law. Additionally, CGIS may not provide desired protection for intellectual property in an international business transaction.
Forum Selection - International arbitration
Its is beneficial for CadMex to chose International Arbitration over Candorean courts OR US courts for the reasons stated here. Gentura may qualify for Foreign Sovereign Immunities Act, which implies that US Courts may not have any jurisdiction over Gentura. On the other hand, there is risk involved in going with Candorean courts, as there is a possibility of government interference with the legal system. International arbitration is faster, less expensive, less formal, and more private than litigation.
Explain why Gentura would be in breach of its contract with CadMex Pharma
CadMex has issued license to Gentura to develop medical agents or drugs using a technique that CadMex has developed which reduces the time required to develop the medical agents or drugs. In return, of this know-how, Gentura has provided worldwide marketing rights to CadMex for the drugs that are developed using CadMex's technology. One of the payment clauses of the contract says, "Gentura will pay the licensor, CadMex Pharma, a running royalty equal to 7.5% of Net Sales of the Licensed Product sold by the licensee protected by patent rights." If Gentura subsidizes the production of VioBrax, the payment terms of the contract between Gentura and CadMex will be violated.

What remedies might be available for such breach?
In event of a contract breach, CadMex has the following options:

Take Legal Action - Taking legal action can affect future relations with Gentura and Candore. At the same time, not taking any action and letting Gentura vary from the payment clause by more than 5% will lead to disregard of the contract by Gentura.
Take no legal action but claim compensation
A financial settlement of the dispute will take care of the interests of CadMex Pharma, but such an action can possibly bankrupt Gentura, which will affect CadMex.

Take no legal action, but share marketing rights for another drug -
This option may open new doors for CadMex by allowing it to control marketing rights of another drug and recover for losses sustained by subsidizing ViroBlax. This option could however give rise to legal complications. Once the losses have been recovered, would CadMex continue to have rights to market the new drug?

Recommendation on how the Gentura situation should be handled.

CadMex should claim compensation from Gentura. The benefits in going by this option are as follows.

?The financial interests of CadMex will be protected if a compensation deal is reached with the help of an International arbitrator.
?The long-term relation with Gentura and Candore will improve as CadMex would have helped avoid a bitter legal battle when Candore is faced with political uncertainty and spreading epidemic.
?It is also possible that CadMex will not lose any revenue owing to the high sales volume because of the epidemic.

In conclusion, by choosing appropriate law for the contract, suitable forum for dispute resolution, and utilizing the agreed upon dispute resolution process CadMex can conduct fair business with the international entity like Gentura with focus on legal, ethical and business issues. Gentura on the other hand gains from CadMex's technological excellence.