Gentura is a biotechnology company based in Candore. CadMex and Gentura have been working in partnership since 2007. Since 2004, Candore has been under the dictatorship of President Gwendoz. President Gwendoz encourages foreign investments; however, these international business transactions are subject to the approval of the Candorean Government. Gentura has had a healthy relationship with the Candorean Government until recently. The partnership between Gentura and CadMex opens new opportunities.
Upon entering into a contractual relationship with Gentura, CadMex was given the choice between the Candorean Regulations for Technology Import Contract (CRTIC) and the Contracts for the International Sales of Goods (CISG). The country of Candore was not a signatory of CISG; therefore, CISG was ruled out as an option. CRTIC was chosen, despite concerns of the CadMex legal counsel. Nonbinding International Arbitration was chosen as the forum in which to discuss any disputes with regard to any contractual issues with Gentura.
Candore gained WTO membership, which did not alter the decisions made.
President Gwendoz was overthrown. Democracy was looming. The country of Candore faced a rare viral epidemic. One percent of the Candorean population was estimated to have the viral infection. ViroBlax was the known remedy for the viral outbreak. Gentura was the only licensed manufacturer of ViroBlax in Candore. The new government put pressure on Gentura to subsidize the price of ViroBlax. The subsidization of ViroBlax would cause a breech of contract with CadMex. The legal counsel of CadMex was advised to take no legal action against Gentura. Gentura would be held liable for damages and compensation. Legal actions would have weakened the partnership between Gentura and CadMex. Sharing marketing rights to another drug would be an option which would not be in the best interest of either party.
One month after the outbreak of the viral epidemic, the...