My friend John came to see me beginning of December 2007. He told me that there is government grant to assist SMEs. He knew how to apply.John said that I can help in completing the application form. John also brought along Mary, the owner of a SME. During our discussion, we did not touch on letter of understand or MOU concerning our cooperation. My intention is to help John.
I visited the government agency who is handling the grant. I also visited the sites own by Mary. I took some pictures (See above). Mary, John and I put our brains together to complete the application form. The application was approved in February 2008.
Mary asked me to submit a detailed training and HR proposals. When Mary appointed my company as Training Consultant, John asked for "Introductory fee" and commission to be paid to his company which I never expect. I was asked to sign payment vouchers without any supporting documents. My company adviser was very unhappy about this.
The lesson learnt from this incident, when doing business, it is better to have a letter of understand or MOU. As there was a saying in Chinese : "先小人，后君子". To translate it into English: To do business, first is to be a villain than you can be a gentleman!
多一事，长一智。Thanks to my company adviser.
1 comment:
In doing business much money is involved. After meeting and discussion some kind of written agreement, not necessary to be MOU, has to be signed to enforce its legality so that dispute would not arise. Should a court case arise, the judge would base his decision on written agreements. The old fashion way of verbal agreement is not legal binding hence should not be practised in modern business.
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