International Issue Enquiry regarding interntl business loan, visa.

[Phileas]

Hello,
I am enquiring on behalf of an acquaintance, who does not speak English. She is Vietnamese, and has a son and daughter studying in Auckland, New Zealand. She does not hold any visa to live or run a business in NZ. She has asked me to enquire for her, after getting into a situation.

She would like to know how she stands legally, regarding starting a business in NZ, despite her lack of a visa. She gave a loan of a few thousand dollars to another NZ-naturalised Vietnamese man for a business start-up in Auckland.

They have a contract laid out, stating that the loan is to establish the business (a restaurant), and that the other man must repay her the full amount of the loan in one years time, including interest (which is a whopping 25% - her demand), whilst paying some rent for the business to her, as it will all be in her name when the year concludes. He takes whatever profits he can make from the business besides this.

The contract is countersigned and witnessed by an Auckland based lawyer acting on behalf of both parties.

1) is the amount of interest she has demanded legal?
2) if he defaults on this contract, is there any international protection or realistic recourse for her?
3) Is she in any likelihood of obtaining a business visa, regarding her investment? (i know this is not the best forum to answer this question, but maybe somone here has come across this situation before).


many many thanks for your free advice,
Phileas

 

[mafioso]

The first thing is, she should never have used joint counsel with the guy starting the business………..she should have gotten her own lawyer who would care only about her rights. Secondly, if she did not personally sign the contract and just sent the money without the benefit of being in NZ she just might have given her money away. It could even be a scam…………..I don't know NZ law but she should try check at their embassy for how to get a visitor visa and go evaluate the situation. Then she can get all necessary requirements for a business visa. Interest rates are not fixed anywhere……….You can accept it or leave it. So that is legal…………..The thing is, I have reservations about such deals in light of scams or people taking advantage of others money…………..the guy know she is not there and might not honor any deal. The legality of the contract or legitimacy of the contract is even questionable. There is no international law to protect her. Only NZ law will apply and it depends on if her contract is even view as valid there. You don't just trust people even if you know them when you are not there. This guy may be honest but most are not ………….Good luck!

 

[Phileas]

I agree about the joint counsel. She has visited a few times already to NZ.
The contract has been signed by all parties, so maybe she has some degree of protection.
i will suggest to her to revise the contract under the guidance of another lawyer acting on her behalf.
As far as the visa goes, i dont see much hope, considering that she doesn't understand English. Maybe there's a chance that her daughter can be awarded a full resident status after her studies, and can then be acting manager of the restaurant after the contract expires, and sponsor her mother to live there occasionally.

Many thanks for your help, I think it's a brilliant service.

 

[mafioso]

You don't need know English to be given a visa. She just needs to go to the consulate with an interpreter or something........... Rules on tourist visas acknowledge the fact that for tourism to grow, not everyone would know the language of the country they are visiting.......I visited Nepal under similar circumstances..... Hope if he contract is valid, there are no loop holes in the contract.

 

[Phileas]

You don't need know English to be given a visa. She just needs to go to the consulate with an interpreter or something........... Rules on tourist visas acknowledge the fact that for tourism to grow, not everyone would know the language of the country they are visiting.......I visited Nepal under similar circumstances..... Hope if he contract is valid, there are no loop holes in the contract.

Like i said, she's visited NZ a few times before, so a Tourist Visa is clearly possible. Because she's investing into a business, she would like to have a permanent resident visa to operate the business personally and for this I assume that she would need a grasp of English to pass the visa requirements points test.
This all may be in vain, as she seems reluctant to invest in another lawyer to act on her behalf, and opt out of the joint counsel situation. She still doesn't understand how vulnerable she is.

 

[mafioso]

Well, at the end of the day, it is her call...........You have done your best. Let's hope she gets her investment back!