Legal contracts, templates and forms, Business Documents and templates

The Economic Realities of Online Legal Services

According to a recent study, "an estimated four-fifths of the legal needs of the poor, and the needs of two-to three-fifths of middle-income individuals, remain unmet."

Recent advances in technology and increased access to the Internet have made it possible for companies other than law firms to deliver document preparation services to these market segments.

Online legal document preparation services provide alternative legal solutions to the vast numbers of people who have unmet legal needs either because they are unable or unwilling to pay for professional legal advice.

Although such services are not without potential problems, proper quality controls can ensure that the benefit from these services outweighs any potential harm.

The diversity of legal documents available online is staggering. As long as you have a computer and a connection to the internet you can purchase a will, divorce, prenuptial agreements, power of attorney, or joint tenancy agreements, just to name a few of the thousands of documents available.

Online document providers not only offer documents to individuals, but businesses can find human resource forms, partnership agreements, commercial leases, non-disclosure greements, and joint venture agreements among many other business documents on offer.

Online Document Preparation Services

offer numerous economic benefits. In order to discuss the economic impact of such products on society it is useful to divide the marketplace for legal documents into two groups.

Group one consists of people with the resources to pay for professional legal advice and document preparation.

Group Two includes people who cannot afford legal counsel to complete their document, and must therefore seek alternative solutions.

Although Group One can afford an in-office solicitor consultation, it should be noted that many people in this group often seek out cheaper, more convenient alternatives.

It is also viable to combine the people from Group One who would seek out alternative solutions with those from Group Two who have no other option. This market includes people who need a legal solution, but find consulting a solicitor 'too costly, excessively time consuming, too cumbersome and convoluted, or just plain forbidding'. Because of these constraints this significant group of people usually leaves their legal needs unmet.

For example, an online service can prepare a document that a court will accept providing Group Two with a solution to their legal problem that they otherwise would not have had. If Group One purchases the same document online it benefits from the cheaper alternative because it has spent less money for the same result. If Group One pays a solicitor to prepare the document, it spends more money for the same result.

Opinions as to whether a software program can generate an effective complex legal document vary widely. Let's use a Will as an example. If you know your own mind and have good will-drafting software-which can instantly produce all the magic phrases -drafting a sound will requires a very modest investment of time. However, it can be argued that while there is a great deal of standardized technical language in any estate plan, the give and take with a trained solicitor in developing the plan should not be under estimated when dealing with complex issues.

For the sake of discussion, assume that a will prepared by a solicitor costs more but has a higher probability of meeting the testator's goals than one purchased online. In these circumstances, Group One is better served buying the document from a qualified solicitor Because they will gain greater benefit in the future, this will outweigh the added cost of having the will prepared by the solicitor.

However, if the added cost of a solicitor-prepared document outweighs the benefit, then the individual may be better off purchasing a document online. Group Two benefits from purchasing their document online regardless, because they have a document that accomplishes at least some of their goals that they would not have been able to afford otherwise.

To illustrate, suppose that Group One has the choice of purchasing a will from a solicitor for $500, or purchasing one online for $20. Further suppose that the will prepared by the solicitor has a ninety-percent chance of accomplishing a benefit to the estate of $2,000 over having no will, while a will purchased online has a seventy-percent chance of accomplishing the same benefit. Under these circumstances, the risk cost of purchasing a will online versus paying an attorney to prepare it is $400 and is not high enough to justify the added $480 in cost. Group One should purchase the will online.

However, suppose that the will prepared by the attorney has a ninety-percent chance of accomplishing a benefit to the estate of $5,000 over having no will, while the will purchased online has a ten-percent chance of accomplishing the same benefit. In this case, the risk cost of purchasing a will online versus paying an attorney to prepare it is $4,000 and certainly justifies the added $480 in cost. Group One should purchase the will from a solicitor. In either case, Group Two is better off purchasing a will online than having no will at all because it has at least some chance of realising the benefit to the estate.

Online document preparation clearly benefits Group Two in almost all circumstances. It gets the benefit of legal protection that it would otherwise be unable to afford. As long as the documents purchased online are of acceptable quality, they are better than no documents at all.

Online legal document preparation services provide an important alternative solution to millions of people who currently have unmet legal needs. As the quality of documents produced online increases, society benefits more from these services.

Online Legal Services

Commercial Retail Shop Tenancy leases and laws

Retail tenancy laws through out Australia have been developed to protect the interests of small business consumers and to assist in levelling the playing field for the parties involved. They seek to provide this protection by making sure that prospective tenants have sufficient information to make a sound business decision about entering into or renewing a Retail Shop Lease rental Agreement.

The type of lease you enter into will depend on a number of factors, including the premises itself and what you wish to use it for. Each state has its own Legislation or Act that defines the type of premises and whether the act will apply. Whether you are a landlord or a tenant its imperative you understand your rights and obligations under the relevant Act and honour your obligations under the lease agreement to ensure you stay out of the legal minefield.

The retail tenancy law is very clear in most Australian states:

A landlord in a retail lease must not, in connection with the lease, engage in conduct that that is misleading or deceptive to a tenant or guarantor. A party who suffers damage by reason of misleading or deceptive conduct of another party may make a claim for compensation.

Because the laws are different in each state we've outlined the requirements of each state on the following pages

• New South Wales
• Victoria
• Queensland
• Western Australia
• South Australia
• Northern territory
• Australian Capital territory
• Tasmania
  

All of your rights and obligations are contained within the following Acts.

• New South Wales: The Retail Leases Act 1994
• Northern Territory: Business Tenancies (Fair Dealings) Act.
• Victoria: Retail Leases Act 2003 and the Retail Leases (Amendment) Act 2005
• Western Australia: Commercial Tenancy (Retail Shops) Agreements Act 1985
• Queensland: Retail Shop Leases Act 1994
• South Australia: Retail and Commercial Leases Act 1995
• Tasmania: Fair Trading (Code of Practice for Retail Tenancy) Regulations 1998
• ACT: Tenancy Tribunal Act 1994 and the Commercial and Retail Leases Code of Practice.

Consultancy Agreements:They Have You Covered!!

Hiring a Consultant has many benefits. One of these is the clear non-permanence of the association between you and the consultant. Hiring consultants lets you avoid the considerable tax and administrative costs that are part and parcel of hiring and preserving regular employees. It also gives you access to specialised skills and expertise that may not have been available in your own business organisation.

Unfortunately, there are also drawbacks to hiring consultants. While most consultants are conscientious professionals, there are no guarantees to this effect. To protect yourself and your business interests, you should carefully dot the i's and cross the t's. In other words, you should draw up a consultancy agreement.

The following are specific reasons for using a consultancy agreement in business:

• Formally set up consultancy relationship

A consultancy agreement formally sets up the relationship between you and the consultant. Thus, there is no room for ambiguity about the nature and status of the consultancy relationship; both parties know the relationship exists and the consultancy agreement makes it formal and legal.

This makes it easier for you to seek compensation later for any damages that may arise out of your association with the consultant and out of the work the consultant has done for you. Furthermore, a formal consultancy agreement also makes it easier for you to prove that you hired a consultant, not an employee, and are thus entitled to the tax benefits associated with hiring consultants.

• Clearly define the consultant's duties and responsibilities.

A consultancy agreement defines what is expected from the consultant. While it is more than possible to get satisfactory results even if you have verbal agreement with your consultant, it is better to safeguard your interests in case you don't get the results you expect.

A consultancy agreement gives you legal recourse if the consultant fails to honour your agreement. Apart from giving you legal recourse in case the consultant fails to deliver. A consultancy agreement also serves as a handy guide for the consultant if he needs or wants clarifications about what is expected in his or her ability as consultant.

• Define subcontracting responsibilities

While it is true that your control over the consultant you hire mainly lies in the "what" (i.e. The result) and not the "how," you do have some leeway over the consultant's methods of performing his or her duties and responsibilities to you. Specifically, you have control over whether your consultant may subcontract the tasks related to your project.

Through a consultancy agreement, you can specify whether the consultant is allowed to subcontract his or her tasks to other entities. In case subcontracting is allowed, the consultancy agreement outlines the conditions which have to be met for subcontracting permission to be granted. Finally, a consultancy agreement makes it unquestionably clear the consultant has complete responsibility for ensuring the quality, compliance and timeliness of the output named in the agreement.

• Limit and Define Compensation

A consultancy agreement usually specifies the amount payable to the consultant for his or her services. It also outlines which of the consultants' expenses are covered by the consultancy fees. Typically, the face value of the award is inclusive of the administrative and operational costs involved in performing the consultant's duties and responsibilities.

Thus, the consultancy agreement protects you against arbitrary claims made by the consultant that you are responsible for his or her costs (for example Telephone bills, office space rental, office equipment buy or lease,), taxes and other costs. This also protects you in case the consultant belatedly decides the fees you have agreed to pay are, after all, not enough compensation for services delivered.

• Know what to expect and when to expect it

The consultancy agreement typically has a schedule listing the consultant's responsibilities. It breaks the output needed of the consultant into tangible deliverables with definite deadlines.

Through a consultancy agreement, therefore, you know exactly what you can expect from the consultant and when to expect it. This gives you the ability to confidently plan other projects that depend on or complement the project on which your consultant is working.

• Protect your intellectual property rights

A consultancy agreement also usually specifies who has intellectual property rights over the contract materials (that is The output needed of the consultant) and the know-how produced during the consultancy relationship. It also states that rights to the materials and know-how that your company brings into the relationship remains yours throughout the duration and after finishing the agreement.

Thus, a consultancy agreement protects your intellectual property rights. This gives you full legal protection in case the consultant infringes on your rights over the materials and know-how produced by the agreement and the project.

• Protect yourself against conflicts of interest

A consultancy agreement also says the consultant confirms that no conflict of interest exists at the beginning of the agreement. It also outlines the steps to be followed in case a conflict of interest does arise during the consultant's performance of his or her duties to your company.

This specific clause of a consultancy agreement protects you against actions by the consultant that may be harmful to your business interests. In case the consultant enters the agreement with full knowledge that a conflict of interest exists (or in case the consultant does nothing to tell you of a conflict of interest arising later when the project is underway). You have legal protection and right to seek legal compensation for the consultant's breach.

• Ensure confidentiality and non-disclosure

A consultancy agreement also obligates the consultant not to disclose proprietary or sensitive information to which it is given access by your company during the project. Furthermore, in cases where an intellectual property resulting from the project cannot be patented or copyrighted, the consultancy agreement has a clause obligating the consultant to keep such property confidential.

The consultancy agreement therefore protects your primary claim to and ownership of proprietary information and materials even when such falls under the unprotected intellectual property category. The consultancy agreement, also, vests in you full ownership and control of sensitive and proprietary information which you have no choice but let the consultant access. A consultancy agreement gives you legal protection in case the consultant fails to keep your intellectual property confidential or is careless enough to disclose proprietary information that has been named in the non-disclosure clause of the agreement.

• Indemnity against liability and loss arising from legal action by outside parties.

Since you do not have much control over how your consultant performs the specific tasks related to your project, a consultant may conceivably violate the law. He or she may even infringe on third-party intellectual property rights - during his or her performance of the duties named in your contract. For instance, your consultant or his or her subcontractor, during designing proprietary software or systems for your business, may use software to which he or she gained access through another project. In this case, the third party whose intellectual property rights have been violated has choices. To file a claim to stop you from using or distributing the output that resulted out of your consultant's infringement of intellectual property rights or may even ask the proper courts to award them damages from the same.

A consultancy agreement protects you as it states that the consultant indemnifies you against claims (intellectual property rights violation, loss to life and property,) that arise out of the consultant's or his or her subcontractors' illegal actions, omission or negligence.

• Facilitate dispute resolution and ending of the contract.

True to any other contract, the consultancy agreement usually has rules for relationship breakdowns. The consultancy agreement will guide you about what forms legitimate early ending of the contract, default on the consultant's part and how disputes between you and the consultant may be negotiated and resolved.

MORE INFORMATION HERE consultancy agreements

CREATING YOUR AD AND HOW TO MARKET YOUR BUSINESS FOR SALE

After going to all the trouble of preparing your business, and collecting the necessary information for its sale, it's important not to rush the advertising portion of the process. By posting limited, ineffective ads you may only receive calls from buyers whom you consider unqualified and unprofessional. In short, if you are not thorough in your marketing you might be wasting a lot of time, both for yourself and potential buyers.

A basic idea for most classified ads is to whet the potential buyer's appetite. You want legitimate offers, so avoid big promises and overstated claims. Try to write your ad in layman's terms; industry talk and technical terms may discourage potential buyers.

The More the Better.

Your goal is to whet the appetite, but in this case less information is not more. Common thinking suggests that buyers will be more likely to call if they are teased by your ad. In most cases the effect is the opposite. Buyers will bypass your business if they feel there is too little information.

More information gives buyers a sense of security: they may feel they already know a lot about you and your business just by reading your ad. If you include enough information in the description section the buyer will be pre-qualified when they contact you-this saves both parties a lot of hassle. Buyers feel more trustful of a seller with comprehensive advertising, which helps when it comes time to negotiate a sale

Serious buyers find it helpful if you put some of the following information in the detail section of your ad:

• Length of time in business, business history

• Number of employees

• Information on the geographic area surrounding the business (very important for lifestyle retreats/B&Bs). If you are selling the property with the business, be sure to include the square footage or acreage and the property's value.

• General industry info - how it's growing, changes etc.

• How you would grow the business in the future - give them a "vision"

• Include photographs of the business. Make sure they show a clean and well looked after premises. Photos on the business for sale websites get more buyers. You may think buyers would be more interested in the info behind the photos, but photos are an easy way to transmit the essence of the business to a large amount of eyes.

• True adjusted net income (know precisely how you arrive at this figure)

• Competitive analysis

• Include any business website. Is the business computerised?

• Multiple phone numbers ensure you can be reached at any time

• You may wish to offer to stay on during the transition to the new owners. If so, indicate this.

Including this information will improve the quality of the calls you receive from buyers, and you will spend much less time answering the same old questions.

Get their attention - 'featuring' your ad improves exposure

Find out if your business sale advertising site has the option to 'feature' a business on the front page. This also usual means the ad will automatically appear at the top of listing results or in its own picture bar on each page-serious buyers will see it repeatedly and respond quicker. This option is usually worth purchasing.

FOLLOWING UP ON THE AD

Keep tabs on your advertising results

After posting, check that your ad ran properly in your chosen outlet. Track your results. Find out where each caller or emailer came across your ad. Once you have determined where the better, more qualified buyers are coming from, focus your advertising on that outlet.

If you do post your business online, make sure your anonymity is maintained and that any enquiries are made through a 'contact form' on the site or if you wish by a phone number you want to use.

The first month is critical

First impressions count. A huge number of interested buyers will see your ad when it first comes out. Having sufficient information in your ad, and being able to explain any peculiarities over the phone, will give you a greater chance of meeting with buyers.

Get back to potential buyers immediately

One of the biggest complaints from business buyers about advertisers is that they take too long to respond. Always return calls and emails promptly, within 3-6 hours as a rule. You are in competition with others, trying to sell their own business, and they are calling and emailing others while you wait.

Don't stop marketing/advertising until the check comes

Half of all offers to purchase businesses are never finalised. Keep your advertising running until you have the check from the buyer. Have backup buyers at all times. Never stop taking phone calls/emails from potential buyers: record their names in a folder and follow them up if things go south with the current buyer. Don't let things stagnate while waiting for any one buyer.

OUTLETS

Deciding where and how to advertise

Advertising your business for sale on general online listing sites, in residential housing magazines or on television will not be the most efficient way to market your business.

The best results come from advertising in a medium which specifically targets the largest number of prospective buyers. Good advertising must cater to likely buyer groups. For this reason, advertising your business on a dedicated business sales website, and representing it in a business specific format, is the preferred option when seeking more qualified buyers.Make the entire process easier on yourself and advertise in the right medium.

Selling your business through a site catering specifically to business buyers will maximise your exposure to quality buyers in all areas local, national, and international.Limiting your advertising to one or two mismanaged or misplaced ads only exposes your business to a small portion of the buyer field. Clumsy advertising may also inadvertently alert employees, customers and suppliers that the business is for sale, a fact you may not wish to disclose early on in the sale process.

Advertising in the classified section of local or national newspapers, the trading post or specific business sales magazines is a good backup to internet exposure. Put small ads on local notice boards if you are comfortable with people knowing you are selling a business. With these methods you are getting your business in front of a group of people who may not use the internet on a regular basis.

Discretion

• Selling your business may require you to maintain a level of secrecy. You may not want your competition to attract customers concerned about a transfer of owners, nor have employees leave the business prematurely.

• Fortunately, there are ways to advertise without revealing too much about yourself or your business. Non-identifying classified ads can be placed in newspapers or online, and you can use a cell phone number or create a blind email address, rather than use the business' contact details.

By following this advice you can improve the marketing of your business for sale. Using these techniques will give you a head start to a successful sale.

This sale of business site can offer you a great marketing opportunity AND some bonuses and services you won't find anywhere else. It is a small investment with huge potential.

Common Sale of Business Mistakes
Common Reasons Why Businesses Don't or Won't Sell

Don't Overprice the Business

A business won't sell if the asking price is to high. Do some research of your area to find out what the market value is for your type of business.

Not Enough Iinformation

A lot of business sellers try to sell without giving enough detailed information to potential buyers. Most buyers won't buy a business that has little information to show that it's a worthwhile investment.

Giving clear and detailed information not only encourages a buyer to buy, but it also gives their accountant and financiers good figures to work with. The best way to evaluate this is to ask yourself "what would I want to know before buying a business"? then supply more than that.

The more details you can supply the greater your chances of a successful sale.

Limited Marketing and Advertsising

Whether you are selling a business yourself or using a business broker, you will have to pay for advertising. There are many ways to get great exposure at very little cost? Using an online Selling Business site is a great way to get your business in front of many potential buyers.

You can't sell something if people can't see it!

Lack of Effort and Preparation

Without being willing to talk to prospective buyers and being prepared with answers to any questions they may ask, you won't succeed in selling your business. Obviously not all buyers will buy your business BUT you should be ready to spend time talking to people who may appear to be wasting your time

Have information ready immediately to avoid losing their interest. But don't give it all up at once, only make certain information available. If negotiations continue and the prospective buyer seems serious then you can give up some more important details.

In the end it comes down to this; without preparation, effort and time on your part then your business will not sell.

Trying To Sell What No One Wants

It may just be the case that your business is in such a niche style that there is no call for it. You may have loved doing it but you might struggle to find someone else with the same enthusiasm. Test the market first just to get an idea. If the local area doesn't work then advertise further afield and try tempting someone who is looking for a complete change.

Bending the Truth

A lot of sellers go to all the effort and expense of trying to sell their business only to have it all fall apart during the due diligence period.

They have bent the truth about their business and now the buyer no longer trusts what the seller says.

Don't try and cover up or hide anything. If there are problems fix them, if you can't or don't want to make sure this is reflected in the asking price

REAL ESTATE OPTION AGREEMENT

How to make a real estate option contract.

Buying, selling and leasing real estate can be one of the most profitable business decisions you can make. It can also be disastrous if you don't know what you are doing. Many investors use real estate options when they decide to buy or sell a property. Why? Because unlike standard real estate transactions, an option allows a potential buyer to purchase the property almost unilaterally. An option to buy real estate is essentially a delayed purchase, where the purchaser is granted the right to buy the property at a later time. If you are considering using real estate options, this is what you need to know:

• WHAT IS AN OPTION? Unlike standard contracts where the buyer and seller agree to transfer the property on completion, an options contract allows the buyer to purchase the property at a later date. Options are usually time limited, and price specific. This means that you have the option to buy the property within a certain time period at a stated price.

• ARE THERE DIFFERENT KINDS OF OPTIONS? Yes. The most common Real Estate Options Agreement cover two situations: pure option to buy, or lease with an option to buy. Leasing a property with the option to buy it is by far the most commonly met real estate option, and is essentially like renting a flat but being allowed to buy it if you wish. A'pure' option grants the option holder the right to buy the property in a certain time period without having to lease it.

• DO I HAVE TO PUT MONEY DOWN? Usually, but it depends. A Real Estate Option Agreement usually involves the potential buyer offering some consideration (money) in return for the option. Depending on the terms of the agreement, you may be entitled to the option only on certain conditions or a certain amount of payment.

• CAN THE SELLER LET SOMEONE ELSE BUY A PROPERTY IF I HAVE AN OPTION ON IT? Not usually. One of the more powerful terms of a Real Estate Option Agreement includes the right for the option holder to stop any other transaction on the property. For example, if you hold an option to buy a property and the current owner decides to sell to another party, you can often stop the sale or at the least receive damages for the sale.

• CAN I TRANSFER MY OPTION TO SOMEONE ELSE? Sometimes you can. A Real Estate Option Agreement often allows for the option holder to transfer that interest to another party. What this means, is that you can sell your option to someone else just like it was any other property. Of course, the Real Estate Option Agreement must allow for this.

The use of Real Estate Options Agreements can be powerful tools for both investors and sellers. All parties involved need to be sure they have drafted suitable agreements that will satisfy all required statutes and laws. Everyone using Real Estate Options Agreements need to be sure of their positions, and the only way to do that is to make your contracts as precise and easy to read as you can.

For More On Real Estate Options Please Go Here

How to Prepare a Business For Sale



Looking at your business through the eyes of a prospective buyer is the most important way to approach selling anything. Know the strong points and the not so strong points of your business. Have a business preparation checklist to go through when getting the business ready for inspection by potential buyers. This is very important in the sale of any business.If you want to get the best price for your business it needs to be attractive and ready to go to a new owner. An under prepared business will more often than not be sold under its true value.

• Some Important Things To Address Are:
  
  Be sure the accounts records are accurate and up to date. Have explanations ready for any odd looking accounts data. People who are buying a business will view it as an investment. If your business accounts are not in order it gives a bad impression and buyers may hesitate to invest in your business.

• Be sure that all the legals are up to date and accurate.
  
  These may include leases, supplier contracts, staff contracts, etc. If a buyer sees these as accurate and up to date in a business for sale it will show you have made an effort to make the transition to a new owner an easier one.

• Remove Any Weak Points.
  
  If your business for sale has some aspects which aren't as succesful or efficient as they could be then make changes to bring those up to scratch. In the eyes of a buyer, an efficiently run business is equal to 'less work' and 'more profit'. Potential buyers will look for ways to get the price down. By doing a good job of preparation you will remove the bargaining power from the buyer and give yourself the upper hand when it comes to negotiating the price.

• Keep Staff 'In The Loop'.
  
  inform them of your plans, assure them that you will do your best to ensure continuede employment under the new owners if they wish. Contented staff give a good impression to a buyer. If a buyer sees unhappy staff they may be put off from buying a business from you. Try and show that the business 'runs itself' to a certain degree, show the staff are capable and that input from the owner is minimal...again...less work for the new owner.

• Information Memorandum.
  
  Have a detailed cover sheet ready for any prospective buyers who may appear - cover everything that you would want to know as if you were the buyer. daily activities, information on any local competition, relevant industry information, the business history. This document is also know an 'information memorandum', it is the most important documentation in the sale of a business. Prospective buyers will use this document to make a decision as to whether they would be interested in buying your business.

As stated earlier, look at everything you do as if you were thinking of buying the business...implement what you would want yourself and you will be well on the way to a Successful Sale of Your Business.

For More on Selling A Business Please Go Here

BUSINESS LEASE AGREEMENT

How to enter a lease so you can rent office, industrial or retail space for your business.

If you are one of the many people who want to get away from the soul-crushing world of the cubicle, starting your own business may have a special appeal to you. Of course, the prospect of building a business can often be a daunting one. Even starting a new franchise will take time and energy to get it to the point where your cash flow will be sufficient. So what if you are not willing to take the kind of chances a new business needs? What if you want the freedom to be your own boss and the security of an already settled job? The answer may lie in leasing an already proven business. When you lease a business, you can have the best of both worlds: the freedom to work for yourself with the stability of an established business. If this is the step you are thinking of taking, here is what you need to know

• WHAT IS A BUSINESS LEASE AGREEMENT? Essentially, it is a rental agreement between you and business owner. Typically, Business Lease Agreements involve you leasing a pre-existing business as-is, with all the equipment, real estate space, etc. You are acting as a manager, but instead of earning a salary, you lease the business from the owner and pay a monthly rent for the right to run it.

• WHAT KIND OF BUSINESS CAN I LEASE? Any business you want to. No matter if you are a business owner, who wants to turn your business into the steady income of a leased property or a prospective buyer, who wants an established business to run for yourself. You can enter a Business Lease Agreement if the other party is willing.

• CAN I BUY THE BUSINESS OUTRIGHT? Maybe. The option to buy the business can be included in the lease agreement. Depending on the nature of the agreement and the wishes of each party, suitable option clauses may be a part of the Business Lease Agreement.

• WHAT DO I NEED TO INCLUDE IN THE BUSINESS LEASE AGREEMENT? 'Leasing a business is a lot more complicated than simply renting space for a business. As well as the pre-existing equipment, the lease agreement may contain clauses about properly running the business, the right of the owner to inspect or advise, options to buy, rights to automatic extensions, rights of refusal, etc. An established business needs attention to detail, much more so than a standard lease for real estate.

The wish to go into business for yourself and be your own boss is inherently appealing to a wide range of people. Because of the risks involved in starting a new enterprise, some people prefer the business lease option instead. No matter if you are leasing your business or considering taking on a business lease, you will need to be sure your Business Lease Agreement is sufficiently complete. A well drafted agreement will be the strong foundation on which you can build your business, so be sure to get it right the first time.

HOW TO SPOT A FRANCHISING OPPORTUNITY

What should you look for when looking for a franchise to buy?

There are a lot of franchises out there, and a would-be franchise owner needs to be able to differentiate between a good opportunity and a potential disaster. Franchise owners want you to buy their product (the franchise) because that is how they make money. But you need to be able to tell the difference between the shiny sales pitches and the real diamonds underneath all the hype. Here are some simple things you can do to spot a great franchising opportunity:

Do your homework. The simplest, most effective way to ensure you know how to find a good franchise is first learn everything you can about business, franchising and all that goes with it. If you can't tell the difference between a balance sheet and a sales invoice, you need to take some time to learn some more. Nothing is more reassuring than being able to rely upon your own knowledge instead of taking someone's word for it.

Find out about the company. In addition to increasing your knowledge about business basics, you'll want to research the company as well. How long have they been in business? What do their numbers look like? Do they belong to a professional organization like the International Franchise Association? If not, why not? There are some scam franchises out there, so you'll need to ensure the company is on the up and up before you commit. You may need to hire a reliable accountant or business analyst to evaluate some of the details for you, as they know what to look for when searching for strong business fundamentals.

Where do they stand? If you are interested in a franchise, you'll want to learn as much about them as you can. Though you don't need to know everything, the most important thing you can look for is their performance as compared to others in the industry. If a restaurant is seeing sales increases of 15% per year, that probably sounds pretty good. But what if everyone else in the industry is experiencing 25% growth? Not so good now, is it? Finding which business is on top, and why, is key to finding a good franchising opportunity.

How do they spend their time? A great way to determine whether or not a franchise will be successful is to look at how the franchisor (the business that sells you the franchise) spends their time. Are they focused on growing the franchise base, or are they focusing on the franchises they already sold? Be careful here. Though the latter may seem to be the better indicator of success, it isn't. A company that is focused on growing their franchise, increasing name recognition and getting a broader customer base is much better than a franchise that spends all their time helping their franshisee trying to get going. The first is building a long-term business, while the second doesn't have a strong growth plan.

For more information please click here

Starting a Business with Multiple Owners 

Starting a business with multiple owners is fairly commonplace. If you are not careful, however, it can lead to major problems down the line.

A business is really an idea when you get down to the fundamental aspects of it. While practically everyone wants to make money, businesses are usually started because somebody has an idea. More accurately, it is often because two or more people come up with something they think people will be interested in.

While the collaborative effort is great for thinking out an idea, potential problems and so on, it can ultimately lead to disaster. Ironically, this is particularly true if the business is successful. The problem? Sharing power.

If multiple people start a business, they often refer to it as "our business". At the outset, this isn't really a problem. As time passes, however, each owner may start to have very different ideas about what "our" business should be doing, how it should grow, niches it should get into and so on. When this occurs, "our" business soon becomes "my" business. The problem, of course, is each owner is saying this. Conflict soon follows.

If you start a business with others, it is very important to understand that you are essentially getting married. This is true even if you had the original idea, work harder than they do and so on. Ownership is ownership. Much like a marriage, you should give consideration to the business equivalent of a prenuptial agreement.

At the outset of any business venture with multiple owners, time should be taken to discuss what happens if there are problems. What if someone dies? What if someone stops working? What if a majority of owners want to go in one direction, but one person does not? How will each of these issues be handled? Whatever your decision, it needs to be put in writing. Depending on the structure of your business, it may come in the form of a buy-sell agreement. Regardless, the idea is to make sure you cover these issues up front.

At this point, you might be thinking you really would be uncomfortable discussing these issues. After all, everyone trusts each other, right? Maybe, maybe not. What tends to happen is you find out that maybe some of the owners have some very different ideas than you do. It is always best to find this out before revenues start coming in. Why? People are not eying the business bank account. They will be reasonable in discussing matters. In a worse case scenario, you may not be able to work things out. If that occurs, at least you found out before spending a lot of blood, sweat and tears on the business.

It is common to start a business with more than one business owner. Such businesses often do very well since the workload is shared. To avoid problems, just make sure everyone is on the same page up front and get it in writing!

How to write an Employee Reference Letter

There are a few simple guidelines for writing an effective reference letter.

Firstly if you don't feel comfortable writing the reference or don't feel you can't say anything positive about the person involved then its better to tactfully decline. It is far better for the individual to find another person who can provide a positive reference for them.

References should contain the following points -

• Date
  
• Name and address of recipient if known.
  
• Salutation , for example, 'To whom it may concern', 'Dear Sir / Madam' or 'Dear 'Name'
  
• Statement of Confidentiality - if written to a specific organization for a specific purpose rather than just a general reference. - optional
  
• State the dates of employment, job title and capacity under which the individual was employed.
  
• State any other details that may be relevant eg, salary, benefits - optional.
  
• State the persons responsibilities - optional.
  
• Confirm that the individual's performance and attitude was satisfactory or exceptional.
  
• Briefly describe the individual's skills, talents, strengths - optional. Aim to be specific rather than vague.
  
• Say that you would re-hire the person - optional
  
• Offer to provide further information or provide your contact details for same - optional
  
• Signature - Yours Faithfully or Yours Sincerely if writing to a named addressee.
  

It's up to you how much information and detail you provide in the reference letter.

Be as factual and honest as you can and remember if you can't say something nice about someone - don't say anything at all.

 Human Resources in the Workplace.

Relationship Breakdown and Capital Gains Tax

Introduction

You make a capital gain or capital loss when a capital gains tax (CGT) event happens, such as when you sell or give away a CGT asset (or an interest in a CGT asset) to someone else - including a relative.

There are some situations where the capital gain or capital loss is disregarded - for example, if you acquired the asset before 20 September 1985 (pre-CGT) or if an exemption or rollover applies.

This does not discuss assets transferred under court orders, agreements and arbitral awards made in foreign countries.

Marriage breakdown rollover and what it means

If an asset, or an interest in an asset, is transferred by a person to their spouse as a result of the breakdown of their legal or de facto marriage, rollover applies provided certain conditions are met.

The conditions include that the transfer has to happen because of a court order (including a consent order), a binding financial agreement, an arbitral award or a binding agreement or award used by a de facto couple. For transfers that happen because of a binding financial agreement, an arbitral award or a binding agreement or award used by a de facto couple, rollover only applies if the CGT event happens after 12 December 2006.

The effect of a marriage breakdown rollover is that the spouse transferring the asset disregards the capital gain or capital loss that would otherwise arise. The spouse who receives the asset pays any CGT when they subsequently dispose of it. Basically, the spouse is taken to have paid what the person who transferred the asset paid for it.

Taxpayers don't choose rollover on marriage breakdown. If the transfer meets the necessary conditions, rollover applies automatically.

From the 2009-10 income year the marriage breakdown rollover will be extended to same sex couples.

If the person transferring the asset acquired it before 20 September 1985 (pre-CGT) and rollover applies, the spouse who receives it is taken to have acquired it pre-CGT - which generally means no CGT is payable by them when they sell it.

If the asset transferred was always the main residence of either spouse, it will generally be exempt from CGT when it is sold. If it was the main residence of either spouse for part of the period they owned it, you may be entitled to a part exemption on sale.

The rollover can also apply to assets transferred from a company or trust to a spouse on marriage breakdown.

Additional rollover conditions for agreements that do not require court intervention

For transfers that happen because of a binding financial agreement, or a binding agreement used by a de facto couple, rollover only applies if at the time of the transfer:

• the spouses involved are separated
• there is no reasonable likelihood of cohabitation being resumed, and
• the transfer happened because of reasons directly connected with the breakdown of the marriage or of the de facto marriage.

The transfer may not be directly connected with the breakdown if, for example:

• the spouses had an agreement before the breakdown of their marriage or de facto marriage that the particular property was to be transferred between them for other reasons not directly related to the marriage breakdown, or
• the agreement provided for the transfer of non-specific property, the transfer does not occur for a considerable time (say, more than 12 months) after the agreement and factors are present that suggest the transfer was not directly connected to the marriage breakdown.

 

If rollover does not apply

If spouses divide assets under a private or informal arrangement (not because of a court order, binding financial agreement, an arbitral award or other specified agreement or award), the rollover does not apply.

This means the spouse transferring the asset must take any capital gain or capital loss they make into account in working out their net capital gain for the year in which the CGT event happened.

Generally, spouses who divide assets under a private or informal arrangement won't have dealt with each other at arm's length in connection with the transfer. In such cases, the spouse who transferred the asset is taken to have received the market value of the asset at the time it was transferred and the spouse who received it is taken to have paid the market value.

What to read/do next

• Marriage breakdown rollover - for more information about the consequences of rollover applying, including the treatment of certain assets.


• Marriage breakdown and transferring of assets - for more information about the rollover conditions and the consequences of rollover not applying.


• Extending the marriage breakdown capital gains tax roll-over relief and related amendments- for information about changes made to the law on 12 December 2006.

Information provided courtesy the Australian Tax Office

HOW TO CHOOSE A FRANCHISE?

Choosing a franchise that is right for you is one of the best actions you can take to ensure your business's success.

If you've already decided to buy into a franchise, the next step is to determine what franchise you want to buy.   There are many different kinds of franchises, ranging from computer repair providers to video rental outlets to restaurants and everything in between.  Before you start a franchise, you'll have to decide what kind you want.  A lot of thought and deliberation has to go into your decision, as choosing the right business for you can make or break your chances at success. 

What do you love to do? Unlike starting an original business where you can decide everything, a franchise comes with a pre-made, turn-key operation.  This means the product or service you are going to sell is already decide for you.  Selling something you absolutely hate is a sure way to meet with failure.  On the other hand, if you already love something and find a franchise that sells it, you may have found your road to success. 

How much profit?  Even if you love a product or business, if the franchise isn't going to make you enough money, you're not going to be very happy.  If you stand to make a much larger product with a product you aren't excited about, you'll have to decide which franchise is more appealing to you.   Making a lot of money doing something you hate may not be worth it to you.  On the other hand, doing what you love and barely being able to get by isn't exactly an appealing option either. 

How much can you invest?  Starting a business costs money, and franchises often cost a lot more than an independent.  You'll have to have a good idea of how much funding you can secure before you decide upon a franchise.  If a certain franchise opportunity is outside your price-range, you'll have to reconsider your choice. 

How much help do you need?  Along with product and name recognition differences, franchises offer different levels of support.  Some are very active helping their customers, while others have less support to give.  You want to find a franchise that matches your needs.  If you are new to the world of business, a franchise with a lot of support will be better than one that isn't able to offer you much.  On the other hand, if you are an experienced business owner, you'll have a wider range of franchises to choose from. 

How established is the franchise?  Some new franchises offer its owners a great opportunity: being the first one on the block to own the business.  There is more risk with new franchises, but also more opportunity.  Established franchises, on the other hand, usually have a more established customer base to draw upon.  They also may be their own worst competition.  If a market is already saturated with the same franchise competitors, you may find the going a little tougher securing a piece of the pie. 

For more information Please go here.

I'VE BOUGHT A FRANCHISE.   NOW WHAT?

Once you've taken the plunge into buying a franchise, you'll want to get off on the right foot.

            So you've bought your franchise and are ready to get started.  Before you open the doors and start welcoming customers, you'll need to have everything ready to go.  New franchisees will usually have a lot of help for their Franchisors, but it's good to be ready for what is coming.  From training your employees to securing a location and mastering the skills you'll need to manage the business, there is a lot of preparatory steps.   These things take time and effort, and all of them must be completed before you can actually start doing business.  Here is a list of some of the steps you'll have to take, and issues you'll need to be ready for when you are getting set to open the doors of your new franchise:

Training.  A new franchise owner will have to know everything about their business, and be able to train new employees as well.  Along with training manuals, tests, certifications and other related materials, be ready to learn a lot about a range of subjects.  Everything from marketing to business procedures will need to be learned by you and your staff, and you'll want to be able to complete everything on schedule.

Get your financing ready.  If you haven't already done so by the time you've signed your franchise agreement, securing funding is the most important step you need to take.  Make sure you get your check to the franchisors on time and have the appropriate documentation in order.  Nothing is worse than committing to paying your franchisor and ending up with a late payment.  Not a good way to start a business relationship.

Secure the location.  Like financing, your business location should be scouted out well in advance and ready to move into as soon as you can manage.  The sooner you occupy the space the sooner you can begin any needed construction or other preparations.  You'll need a base of operations, but to make it complete you may have to find contractors to install fixtures or equipment, interview potential employee and train them in your space.  It is quite common that new locations require significant set-up times, so the earlier you start, the better.

Keep the franchisor informed.  Your franchisor will probably want to keep tabs on your progress, so communicating with them in the early stages is very important.   It is so important, that most franchise organizations require new owners to make regular status reports.  You'll have to be ready to keep detailed records of everything you do, how you progress and where things stand.   The franchisor will also probably advise you about the process as a whole, meaning they'll tell you what items will take the longest and what should be done before other efforts are begun. 

For more information Please go here.

COMMON FRANCHISING MISTAKES AND HOW TO AVOID THEM

Use this list to get ahead of the learning curve and avoid problems before they happen.

Franchises have been around for a long time.  If you are starting a new franchise business, you'll often be confronted with problems and situations you'll have to work very hard to solve.  But don't worry, you aren't reinventing the wheel here.   The kinds of problems you are most likely to encounter have been handled by people just like you, and you can learn from their mistakes.  We've come up with this list of some of the most common franchising problems so you can avoid them before they happen.

What did you do wrong?  One of the simplest things you can do to avoid some of the most common franchising problems is to talk to other franchise owners, as well as the franchisor.  Just ask them what they did wrong when they started, or what they wish they would have done differently.  Though the specific situation they handled may not exactly apply to you, you can use their advice to learn to spot problems before they happen.

Know your franchise agreement?  The devil is in the details, and one of the most important things you can do is  know your franchise agreement inside and out.  What does the franchisor require of you?  Do you have to buy specific equipment from a specific manufacturer, or can you purchase after-market goods?  What about employee pay, or inventory suppliers?  What can you personalize, and what are you specifically barred from doing?  Knowing all this beforehand will go a long way in heading off disaster down the road.

Marketing pitfalls.  A new business is a great opportunity, especially for those who want to sell you marketing.  They'll come to you and promise the moon, the stars and everything under the sun.  Newspapers, radio, periodicals, TV and internet advertisers will want you to listen to them so they can get you the best exposure around.  Be very careful here.  Your franchisor probably has a standardized marketing plan already laid out for you, and you would be wise to follow it.  Remember, companies that want you to advertise with them do so because that is how they make money.  You want to be sure your advertising dollar is well spent, and following the advice of the franchisor is almost always the best way to go.

Rental Space.  When you start a new business it takes time to grow it into a successful endeavor, and anything you can do to minimize your expenses goes a long way.  One of the simplest ways to do this is to get the best lease possible.  Getting your new landlord to give you the first few months free, getting the rent as low as possible and ensuring maintenance fees and taxes don't overwhelm you are some of the best things you can do to get going.  Worrying about having enough cash flow to cover the costs of the lease is no way to focus on growing your business, so do everything you can to minimize these costs.

Sale of Business Help

Here is the information you will need to sell your business. We have sourced the most cost effective methods and best practices to help you on your way.

A legal Sale of Business Contract

How to successfully sell

Here are a few things you must keep in mind when you are selling your business:

Operating Costs: You should regularly review your operating costs but especially so when preparing your business for sale. Like they say "a penny saved is a penny earned" and in business reducing your operating costs is just as important as making sales. Your aim should be to reduce costs without affecting the efficiency of your business

Profit Trends: Your buyer will be looking at profit trends to see stable and steady growth of the business in the years leading up to a sale. At some stage you will need to disclose to the potential buyer your financial details showing the business performance. It's imperative that you enter a confidentiality agreement prior to disclosing any sensitive business information.

Tax: Ensure that all your tax obligations are up to date.

Valuation Expectations: You must have realistic valuation expectations. Valuation is important but do not let it get in the way of securing the sale - if you have a serious buyer and you don't quite meet eye to eye over the purchase price, negotiate. Sometimes it pays to remember the adage that "a bird in the hand is worth two in the bush."

Timing: It is better to sell your business on historical trends and results - they are a proven track record that you can point to and they will provide a strong negotiation platform. If you forecast growth of 20% for the coming year and can point to 20% annual growth for the last two to three years, then your forecast will have more credibility.

Finding a Potential Buyer

When selling the most important thing is finding a buyer - not just any buyer but someone who is willing and ready to pay for it.

A serious buyer will be more interested in a business that is well prepared and presented for sale. There is nothing more certain to put off a buyer than being presented with a buying proposition that looks 'shabby', has little or no records or information available to assist them to arrange the purchase.
Your ideal buyer should be one:

* presents the least hassles after the sale
* offers you the best price for your business
* who does not compete for your ongoing business if you are retaining interests in the business area.

Since there is a chance that you might have to work for him during the transitional stage after the sale, it is important that you get along with the buyer.

Strengths

It is important that you identify strong reasons that can be easily substantiated as to why your business would make a good buy. If you fail to identify the reasons, it is unlikely that you will be successful in finding a buyer for your business.

Financials

You must first determine if your business is healthy and financially sound. If not, your buyer might not offer you the price you want and will try to buy the business at a distressed price.

Planning

You should start planning the sale well in advance so that you have time to groom the business and make it as attractive as possible to potential buyers. It is advisable to get a preliminary valuation before you offer it for sale.

Timing

It is important that you sell your business at the right time. This can have a significant impact on the price you get for your business.

The general state of the economy is a key factor. The state of the industry your business is in also plays an important role. Buyers would be more willing to buy your business when their own business is doing well. The interest rates and lending practices of banks are also important. You should aim to sell when profits increasing and look likely to grow further. Tax consequences and any forthcoming changes to tax rules also play a role in determining the right time to sell your business.

Making your business attractive for the buyer

A poorly performing business might not have many takers. Selling it can be difficult or impossible. Before investing time and energy in trying to sell your business, you must determine if you really have something to sell. There are things which can make your business saleable:

* Profit history - All buyers will definitely want to see if the business has been making money. The business should make enough money to generously reward the owner's day-to-day efforts. Most buyers will be seeking a business that has a consistent record of profitability.

* Good location - A good location makes your business more saleable especially if the location is essential to the success of the business-for example, a car rental business located near an Airport.

* Good condition of premises and equipment. Buyers will want to visit and inspect your business premises before they make any commitment. A run down premises is likely to be an eye sore and surely make your business less attractive to the buyer. Inventories and other goods should be kept in the appropriate places. All office equipment and machinery must be in working condition.

* A well stocked inventory of goods

* A loyal group of customers or clients. For any business, the existence of good ongoing relationships with customers and suppliers is very important. It can be a compelling reason why a buyer will choose your business over others.

* Lucrative long-term contracts with customers or clients

* Trade secrets, copyrights, patents, or trademarks that are hard or impossible to replicate

* Solve Legal Problems - No potential buyer will want to face the strong possibility of significant lawsuits by unhappy customers or disgruntled employees.

* Collection of Accounts Receivable - If you want to sell your business including your accounts receivable, you'll need to show that they are almost certainly collectable.

* Accounts - Your accounts should be clear, current, and consistent, clearly outlining income, costs, and cash flow.

* Business Plan for the Future - A well written business plan that looks ahead for the next three or five years goes a long way in making your business attractive to buyers. Your business plan should be credible, convincing and help the buyer envision future growth and profits.

* Location security - Sometimes, the very fact that the buyer can operate the business from its existing location can play an important role in making your business attractive to the buyer. So if your business is operating on a leased property, it would be wise to lock in the lease. If your lease is about to expire, it will be a big disadvantage.

* Complete Disclosure - It would be in your interest to disclose all aspects of your business including the negatives to the buyer. The buyer will conduct a due diligence before purchasing your business. Should you conceal any aspect of your business and the buyer unearths them during the due diligence, it could put you in a embarrassing situation and the buyer can even walk out of the negotiation and in some cases sue you.

* Honest Business Practices - Any business with a notorious reputation is likely to turn buyers away.

* Provide a Clear Picture of How You Get Compensated - As the owner of the business, you may receive a salary, a bonus, fringe benefits- or all these things. Inform buyers about these forms of compensation and also all non-cash perks, such as business-related travel and entertainment or a car purchased by the business.

* Have a Believable Explanation of Why You're Selling - No business man will walk away from a profitable business. Buyers will want to know the reason for the sale.

There's one aspect of the deal that you must structure with great care: the security deposit, also called advance or token amount. If the buyer does not ultimately pay the entire sale amount, you can sue the buyer. But if the buyer can't pay, winning a judgment against that person probably won't do you any good. If the buyer goes into bankruptcy, you won't even be allowed to sue. The security deposit you receive is your assurance you will be able to get at least something in such cases. You need to be careful, and very tough, when negotiating the security deposit.

Never bring your ego in the sale. Every buyer will be looking at the weaknesses in the business. Don't take it personally. They have to do so to protect themselves. If you want the negotiations to begin, you must let go of your personal feelings. The faster you let go of your personal feelings, the sooner the real negotiations can begin and you can get the best deal. The best deal for your business may not necessarily be the best deal for you. Separate the two and you stand a very good chance of success.

Key Negotiation Issues

* Structure of the sale - Will you be selling your entire business or just its assets?
* Assets being transferred - Will you keep some assets that are currently part of the business?
* Payment terms - Will the buyer pay full cash upfront or make payment in installments?
* Seller protection - What rights w

Associate Leases: A Guide for Employers and Employees

You have probably heard of salary packaging, a flexible remuneration scheme where employees agree to forgo part of their salary (thus the term salary sacrifice) in exchange for certain non-cash benefits. An associate lease is one of the ways through which employers can provide their employees with car benefits under a salary packaging agreement. With an associate lease in place an employee can reduce their taxable income in exchange for a motor vehicle.

What is an Associate Lease?

An Associate Lease is a lease rental arrangement whereby an Associate of the employee (eg partner, spouse) owns the motor vehicle and leases it to the employer. The motor vehicle is then provided to the employee on a fully maintained basis.
Once the lease is in place, the motor vehicle is recognised as an Employer provided motor vehicle for both the purposes of the Income Tax Assessment Act and the Fringe Benefits Assessment Act.

The Benefits of Associate Leases

The Associate leases arrangement provides two key benefits :
i) Lease payments are paid as income to the associate who would generally be in a lower tax bracket than the employee.
ii) Additionally all of the running and maintenance costs are paid for and claimed as a deductable expense by the employer.
iii) Employee forgoes income in exchange for car benefits thereby reducing tax liability

An associate lease is thus a salary sacrifice arrangement that is very similar to a novated lease agreement. However, in an associate lease, the employee's associate is the owner and thus the lessor of the vehicle provided by the employer to the employee whereas, in a novated lease, a finance company is the lessor.

However convoluted it may seem on the surface, an associate lease is simply an arrangement in which the employee through his associate leases the employer his or her existing car so that the employer can provide him or her with car fringe benefits, which he or she pays for by sacrificing part of his or her future salary.

Under an Associate Lease Agreement, the associate is liable to pay taxes on the lease payments received. However, if the associate in the agreement happens to be someone who has no or quite low income (e.g. adult child attending university), then income tax savings can still be considerable. After all, the marginal tax rate would still be lower than the rate that the employee would have to pay had the amount been on his or her assessable income. The depreciation allowance for the first year also leads to further reduction in the associate's assessable income.

Why Every Business Big or Small Should Take Advantage of Shareholder Agreements.

 

One of the worst things that can happen to a company is to have a minority shareholder who is unhappy with how the company is being run and no way to force him to sell his shares back to the company.

This situation can foster devastating legal action by an unhappy investor.

A Shareholder Agreement (also referred to as a partner buy-out agreement) can prevent this problem and give the company the right to buy-out a director or an investor.

If you don't have an investor buy-out agreement, then there is virtually no way to eliminate an unhappy investor or partner at a fair and reasonable price.

There are numerous reasons why smart business people use shareholder agreements.

As already mentioned the first and prime reason is that it provides an exit strategy. Without such an agreement the selling shareholder and the other shareholders must reach an agreement on a value of shares and stock. This is frequently a difficult task in closely held companies, particularly if the remaining shareholders have little or NO interest in purchasing the shares.

On the other hand, where a company has grown to be successful so that there is actually an outside market for the shares, the shareholder agreement allows shareholders to have control over any sales of shares to outside parties. This is done by a provision in the agreement that the shareholders have "a right of first refusal" to purchase any shares being sold, before the shares can be offered to outside sources.

Shareholder agreements can also ensure ongoing control of the company.

For instance, if a shareholder was married at the time that he gained shares in the company, the shares may be considered community property under state or Federal law. In the event that the shareholder does actual get divorced, his or her ex-spouse will have an ownership interest in one-half of the shares. A shareholder agreement has a provision that in the event of divorce; any shares held as community property by an ex-spouse MUST be sold back to the company.

Another circumstance where a shareholder agreement provides "control" to other share-holders is in the event of the death of a shareholder.

If there is no shareholder agreement in place, then the shares owned by the deceased would either be inherited by the person or persons designated in the shareholder's will.

Or, if there is no last will and testament, the shares may be frozen by the state in probate or in a legal case involving the decease estate.

Either way, the remaining shareholders have no control over the person or persons who eventually become Co-owners of the company with them.

A Shareholders Agreements includes a provision that each shareholder agrees that in the event of death, their executor will be bound to sell the shares back to the company.

If you hold shares in a company - it is in your best interests to insist upon a Shareholders Agreement - if you don't you are putting your investment at risk.

Financial Agreements before Marriage: Prenup or PreNuptial Agreement

It's not the 1950s. In Australia two generations ago divorce was rare and no one knew what a prenup was. You married in your early 20s, had 2.8 kids, and usually you stayed married, till death do us part.

Society doesn't plan your married life any more. Marriage isn't seen as permanent, divorce is comparatively easy, and there's little social stigma in going through two, three, or more marriages with children from each of them

People going into a marriage today may need to consider more complicated issues. They may wish to protect their existing children, they may have parents who need care or they may simply understand the statistical reality that, today marriages are fairly short-term affairs. They hope for and work towards the best future together, but they use a prenuptial agreement to insure anyway.

Section 90B of the Family Law Act 1975 refers to Prenuptial Financial Agreements before Marriage. Commonly known as a prenup, prenuptial agreements or pre nups, they are most commonly used to protect the assets of the wealthier party in the event of a marriage break down.

Contrary to popular opinion, prenuptial agreements are not just for the rich and famous. Increasing numbers of less famous couples are opting for written prenup agreements to protect the financial assets each partner brings to the relationship.

A Financial Agreement is the method Parliament has set up for you to protect the assets you take into a marriage by predetermining how those assets should be dealt with, if the marriage fails.

A Prenuptial Financial Agreement made under section 90B is a substitute for court action and means that before marriage the parties have negotiated a settlement of their family issues should the marriage end. This means that, at least insofar as they concern money and possibly child maintenance issues, the couple has resolved its issues in advance without needing the court to impose a solution.

For example. An engaged couple with children from prior marriages may use a prenup financial agreement to spell out what will happen to their property when they die. This means they can pass on separate property to their children and still provide for each other if need be. Without a prenuptial financial agreement, a surviving spouse might have the right to claim a large portion of the other spouse's property, leaving much less for the children.

Couples often use prenuptial financial agreements to protect the assets of either partner from debts incurred by the other, or if one party is at risk of being sued.

Lets look at an example;

Julie and Alan are both in their late 40s and about to be married, each for the second time. Julie is a financial adviser who has two teenage children. Alan is a builder who has a six- year-old daughter. Each of them owns a home. After they marry, they plan to rent out Alan's house and live at Julie's place. Both Julie and Alan want to protect their property from the other person's debts. Although Julie's business is quite successful, she and Alan want to be sure that there will not be any caveats placed against Alan's home if a disgruntled investor sues Julie, or if her business runs into financial troubles. They are equally concerned about protecting Julie's assets and income from Alan's business debts and any child support obligations to his ex-wife.

What should Julie and Alan do?

Alan and Julie can quarantine their property by entering into a prenuptial financial agreement (prenup) with each other (under section 90B of the Act). This means Alan's house will not form part of the asset pool available to creditors in the event that someone tries to sue Julie or visa versa. The Agreement will also prohibit Alan's Ex-wife wife from making a claim in relation to Julie's property.

Financial agreements can reassure and comfort people entering into a marriage or de facto relationships. They are recognised and enforceable under the Family Law act and can save you time, money and a lot of heartache.

What is a Post Nuptial Agreement?

A post nuptial agreement is a Financial Agreement created under section 90C of the Family Law Act 1975.

A Post Nuptial operates in a similar way to a Pre Nuptial agreement except it's made after the wedding. Post-nuptial agreements deal with the difficult issue of how to establish an equitable distribution of shared assets and interests if the marriage breaks down.

It is common for couples to make such agreements to help resolve issues in their marriage by removing a source of disagreement over finances, assets, children, etc. Post Nups are sometimes considered in mediation where there has been a temporary breakdown in the marriage or the parties wish to establish a degree of certainty as to the financial outcome of any permanent breakdown.

Many couples will be surprised to learn that making a post nuptial agreement can actually promote harmony by helping one or both of the parties to feel more secure in the relationship.

Other reasons a couple might consider a post nuptial agreement.

* An increasing number of families have two working partners. They may be running careers or businesses or both, and for some people, having separate control and ownership over their own creations becomes an issue of major importance. A post nuptial agreement will help to minimise the possibility that these issues will be the cause of a relationship breakdown.

* If the financial status of either spouse changes after their wedding. Changes in a career, receiving an inheritance, experiencing a change in investment income, selling a business, etc. are all valid reasons to want a postnuptial agreement.

* Remarriage. Individuals entering their second or third marriages who have children from prior unions, who want to make sure that their assets go to their respective children or parents or another beneficiary can benefit from a post nup. As the age of first-time brides and grooms continues to rise, even couples entering into their first marriages are likely to bring more assets to the relationship than was common in the past,

.

* Didn't get around to making a Pre nup. It's hardly the most romantic subject and it is understandable if a couple find it difficult to discuss breaking up when a life together is just beginning. Sometimes couples just don't get around to it, or are unable to complete a pre nup before the wedding takes place. So a postnuptial agreement is the logical follow-up.

A financial agreement lessens the need to enter court proceedings and extended litigation following a relationship breakdown because it prevents the parties from going to Court for orders relating to the assets and liabilities covered in the agreement.

All litigation is expensive and the outcome inherently uncertain. Matrimonial litigation also comes with an added emotional cost. A financial agreement that provides certainty avoids these financial and emotional costs, and allows a couple to decide in advance what would be a fair division of their assets if, for any reason, their marriage were to fail.

For more information on this type of agreement and many more please visit HERE, A site dedicated to all types of family law and relationship agreements and contracts.

Separation Agreements (separation property settlement agreement)

Separation Agreements for De facto or Married couples

 

Separating from a long-term partner whether you are married or defacto can be an emotionally draining and financially devastating time. Often coming at the end of a long and difficult process, the decision to leave is not usually an easy one, especially if children are involved.

Married couples who no longer wish to live together as husband and wife but who are not divorced are classed as being separated.

Family Law Act 1975 Sect 49 defines separation as;

(1) The parties to a marriage may be held to have separated notwithstanding that the cohabitation was brought to an end by the action or conduct of one only of the parties.

(2) The parties to a marriage may be held to have separated and to have lived separately and apart notwithstanding that they have continued to reside in the same residence or that either party has rendered some household services to the other."

Usually the couple who has separated will live in separate dwellings although as the Act states it is not always necessary to live separately to be classed as separated. The parties may be separated although living under the one roof.

Marriage is a contract under law, binding the couple to various rights and obligations pertaining to property, children and maintenance of the partners. When a marriage breaks down and the partners separate (or divorce) then provisions for these marital obligations must be put in place.

Recent amendments to the Family Law Act which came into effect on 1st March 2009 now give de facto couples (inc same sex couples) the same access to the law as married couples have had since 1975.

Property settlements may be resolved by entering into a financial agreement or an agreement with 'consent orders' being made by a family law court. A property settlement can be finalised at any time after separation and before either spouse applies for divorce. However, a court application for property settlement or spousal maintenance must be filed within 12 months of the divorce, or you will need the court's permission to apply out of time.

A consent order is a written agreement that is approved by a court. A consent order can cover parenting arrangements for children (a 'parenting order') as well as financial arrangements such as property and spousal maintenance, no matter whether the couple are married or de facto.

The difference between a Financial Agreement and Consent Orders dealing with division of property or parenting arrangements is that the Financial Agreement does not need to be lodged with the Court for approval, and is not subject to review by the Court. Whilst parties have to wait 12 months from the time that they separate until they can apply for their divorce, they can resolve property matters between themselves by making a financial agreement under section 90C or 90UD of the Family Law Act.

The parties may elect to enter into a property settlement agreement (more accurately known as a Financial Agreement) in preference to Consent Orders where they require certainty of outcome, rather than having the court impose its view of how assets are to be divided. A financial agreement made under section 90C or 90UD allows the partners to decide for themselves how to manage these obligations without the need for entering court proceedings, reducing stress and the risk of extended litigation.

Reaching an amicable property settlement agreement quickly about debts, assets and property offers many advantages;

• you get to make your own choices
  
• your ongoing relationship as parents, if you have children, is likely be more harmonious and
  


• you are able to move forward with your life without the strain of ongoing court proceedings.
  

Separation Extra Information.

'According to the 2006-07 Family Characteristics and Transitions Survey, 84% of adults had had at least one marriage or de facto relationship. For those aged under 35 years, women were more likely to have had a partner than men (66% and 55% respectively). For people aged 35 years or over 95% had had at least one marriage or de facto relationship. This included 18% who had two relationships and 7% who had three or more. Although men aged 35 years or over were slightly less likely than women to have ever been in a relationship (94% of men compared with 96% of women) they were more likely to have had three or more relationships (8.4% compared with 4.8% for women)'.

With theses statistics showing a lot of people have had more than one defacto type relationship, it stands to reason that a lot of people have had more than one separation.
So if you are in a group of 10 people; 2 or 3 will have had 2 or 3 de facto separation, 1 or 2 will have had 3 or more de facto separation, and the scary bit is that 5 will be heading for there first de facto separation.

A separation agreement is now affordable and very simple to do. In a difficult time the last thing you need is extra stress and anxiety.

Binding Financial Agreement after Dissolution of Marriage: Divorce

When getting a divorce there are two processes to consider - one is simply dissolving the marriage itself and the other is dividing the property, spousal maintenance and child support issues.

A 'Certificate of Divorce', which contains the dates of the decree nisi and the decree absolute marks the formal end of the marriage.

Getting the divorce.

In Australia it is quite simple to get a divorce - it can be done on-line at http://www.divorce.gov.au/ . This site has information and resources to help you learn about the divorce process and lodge your application for divorce whether it be on-line or offline

Property Settlement / Maintenance and Child Support Issues

Divorced couples who wish to finalise all matters of a financial nature in dispute between them, including spousal maintenance, require some form of legal documentation.

As long as the coupe are communicative and willing to resolve their issues they can be addressed in one of two ways. The couple can make an agreement with 'consent orders' being made by a family law court or they can enter into a financial agreement.

A consent order is a written agreement approved by a court. A consent order can cover parenting arrangements for children (a 'parenting order') as well as financial arrangements such as transfer and sale of property and spousal maintenance. The court must be satisfied that the orders are properly drafted and that the terms of the agreement are 'just and equitable';, before it will approve them.

Provided for under the Family Law Act 1975, Section 90D refers to Financial Agreements after the dissolution of marriage or divorce. Like other Financial Agreements, section 90D focuses on the division of financial resources of both parties and maintenance of either party after the couple has divorced.

The difference between a Financial Agreement and Consent Orders is you do not need to lodge your financial agreement with the Court for approval, and it is not subject to review by the Court.

If no agreement can be reached then an application for property orders must be submitted to either the Family Court of the Federal Magistrates Court.

An application must usually be made within 12 months of your divorce becoming final. The decision is then made through a court hearing.

Financial agreements 90D (Divorce Agreement) negate the need for the couple to enter court proceedings, reducing the risk of extended litigation and providing certainty of outcome.

Reaching an amicable property settlement agreement quickly about debts, assets and property offers the divorcing couple many advantages;

* you get to make your own choices

* you significantly reduce the financial and emotional costs of taking the matter to court

* you can ensure more open communication with your former partner increasing the likelihood of improved conflict resolution in the future

* your ongoing relationship as parents, if you have children, is likely be more harmonious and

* you are able to move forward and make a new life for you more quickly without the strain of ongoing tension and disputes.

A Financial Agreement allows you to decide how to divide joint financial resources out side the court system between yourselves, reducing your legal costs and the stresses associated with protracted litigation.

Sitting down with your ex now to work out a 'property settlement agreement' and what your agreement needs to achieve, before consulting your legal adviser, will save you considerable time, money and anxiety. Taking the time to work things out between you will also minimise the risk of having a lawyer draft a one-sided agreement that fails to reflect the needs of either party.

Each party must receive independant legal advice.

Once you have drafted your Agreement the law requires that each party must receive independent legal advice and the agreement must contain a certificate from a lawyer stating that each party has received said advice. This ensure that neither party can argue that they were not aware of the impact of the document they were signing.

Making a financial agreement under section 90D is a logical alternative to court action and offers a reliable exit strategy, which lets you relax and get on with your life.

 

Australian Residential Tenancy Rental Agreements

Each of the Australian states and territories have passed legislation to govern residential tenancies. Residential tenancy agreements are governed by the respective residential tenancies Act although some tenancy agreements are excluded from the operations of the Act. An example of this may be where the tenant has an agreement to buy the premises. In addition some types of premises may not be governed by the Act even though they may be subject to a residential tenancy agreement. These may include hotels or holiday houses, where in other states the legislation may extend to mobile homes, caravan parks and boarding houses. Essentially there are many similarities in each state Act and just as many differences. If you are a landlord its in your interest to familiarise yourself with the operations of the residential tenancies act that applies to you. If you are a tenant and want precise information on your rights and obligations you will also find it in the act.

Some of the residential tenancies Acts provide for a prescribed standard form of rental agreement. These standard rental agreement forms set out the minimum rights and obligations of the landlord of the rental property and the tenants and must form part of any residential tenancy agreement be it oral or written. These minimum provisions deal with

• the payment of rent, where and when the rent should be paid and may also provide for rental increases


• the term of the rental agreement and what should happen when the rental term ends


• the landlords access to the premises and under what circumstances the landlord or landlord's agent may enter the premises


• the administration of security bonds


• the tenants right to quiet enjoyment of the property


• additions to the premises


• who pays for water electricity and services to the rental property


• the tenants obligation for the actions of others


• the tenants obligations to look after the premises during the term of the tenancy


• Locks and security devices


• procedures under which the tenancy may be terminated leading to the landlords recovery of the property.


• and many more depending upon your state or territory.

Parties to a residential tenancy agreement may insert additional terms to the prescribed rental agreement but only if the terms do not contravene the tenancy Act. Additional terms may be void if found to be inconsistent with the prescribed form or the Act. So in effect parties to a Residential Tenancy Agreement cannot contract out of their obligations.

Below is a link to more specific details for each state

Tenancy Agreements

Tenants in common

The soaring price of real estate makes getting into the property market hard. The possibility of pooling resources with friends and family to achieve this is appealing.
The question is How?
The answer could be to become 'tenants in common'.

Tenants in common is a type of joint ownership of property. This type of co ownership is most suited to investment type properties where each 'tenant in common' is able to deal with their interest individually. It is vital to all involved that the purchase is documented and regulated by a tenants in common or co ownership agreement which can outline every aspect of the purchase.

There can be as many individuals as you like holding a share of the title to a single piece of real estate. The shares in this type of agreement do not have to be equal meaning you can have multiple 'owners' with varying shares in the property. These shares are generally decided at the time of purchase, but can be altered at any time, provide all parties agree to the change.

Each shareholder is able to leave their share of ownership in their will to anyone they choose and the other tenants in common have no legal claim to it. Each tenant in common has the right to deal with their share of the property separate from the others. The share of a tenant in common is known as an "undivided" share.

An initial outlay or 'capital' is needed and then an amont (stated in the agreement) is paid into a 'revolving' fund on a pre determined schedule (ie, weekly, fortnightly,monthly). This fund covers all expenses incurred by the property and if these exceed available funds then each party must put in extra money.

What if I want to sell my share?
After an amount of time set out in the agreement, a party can sell their shares. They can be sold to anyone but must be offered to the other parties in the agreement first (known as the 'first right of refusal'). If the sale is accepted then the selling party will be responsible for the cost of valuation and all of the other costs incurred.

These are the basics of becoming 'tenants in common'. The finer details are all covered in your Tenants in common agreement.

It is a viable and sound way to enter the property market without having to find all the money yourself. Just do it right at the beginning and you can be on the property market ladder sooner than you might think.As long as you have made a 'tenants in common' agreement and all parties have signed and agreed then there can be no arguments in the future.

What is a de facto relationship?

The term "de facto relationships" is defined in Section 4AA of the Family Law Act.

(1) A person is in a de facto relationship with another person if;
(a) the persons are not legally married to each other; and
(b) the persons are not related by family;
(c) having regard to all the circumstances of their relationship, they have a relationship as a couple living together on a genuine domestic basis.

(5) for the purposes of this Act;
(a) a de facto relationship can exist between 2 persons of different sexes and between 2 persons of the same sex; and
(b) a de facto relationship can exist even if one of the persons is legally married to someone else or in another de facto relationship.

For a full definition click the link to Section 4AA of the Family Law Act.

One should note that before the recent amendments to the Act, the regulation of de facto relationships (also known as domestic partnerships) came under state legislation. So each of the individual states and territories drafted their own set of laws to govern relationships outside of marriage.

For decades defacto and same sex interest groups have lobbied parliament to have their relationships recognised under the provisions of the Family Law Act. Now de facto and same sex couples in most states have the same access to the law as married couples have had since 1975.

All the Eastern states (Qld, NSW, Vic and Tasmania) plus the two territories (ACT and NT) have referred their powers under state legislation to the commonwealth, which leaves South Australia and Western Australia choosing to regulate domestic relationships themselves. SA seams stuck in the past and WA has its own Family Court Act which mirrors much of the legislation in the Family Law Act.

Credit where credit is due this idea was stolen from my friend Luke but it's modified to suit the occassion.

Dearest Google,

I've been waiting your return for only a short while but as the moments tick by more content and keywords are flooding my pages. I've written about agency agreements and all the fabulous ways to apply them. I know when you return you'll want to learn everything you can about the keywords I've used to excite those little spiders. Caress my pages you'll find "agency agreement example" "agency agreement nsw" "agency agreement sample" "agency agreement template" . I can feel your excitement building. Try this gently now "agency contract" "agency law" "agent Agreement" "agent agreement template" "agent agreements" "agent contract" no stop!! I don't know if I can take it any longer- maybe just one more "agents agreement" "agents agreements" "agents contract" "agents contracts".Tenants in common

There's just a few more words I need to whisper my sweet google before I let you go "commercial agency agreement" "commission agreement" "contract agencies" "exclusive agency agreement" "exclusive agency agreements" "exclusive agent agreement" "exclusive agreement" "exclusive selling agency agreement"

"managing agency agreement" "sales agency agreement" "sales agency agreements" "sales agent agreement"

"selling agency agreement" "sole agency agreement" "sole agency agreements"prenups, postnups, financial agreements,separation agreements, defacto agreements, de facto agreements, cohabitation, pre nuptial, pre nuptual, family law, retail lease agreements,rental agreements, tenancy agreements.

Until next time my love.

Australian Retail Tenancy Laws and Contract Kits

Commercial Retail Shop Tenancy leases and laws

Retail tenancy laws through out Australia have been developed to protect the interests of small business consumers and to assist in levelling the playing field for the parties involved. They seek to provide this protection by making sure that prospective tenants have sufficient information to make a sound business decision about entering into or renewing a Retail Shop Lease rental Agreement.

The type of lease you enter into will depend on a number of factors, including the premises itself and what you wish to use it for. Each state has its own Legislation or Act that defines the type of premises and whether the act will apply. Whether you are a landlord or a tenant its imperative you understand your rights and obligations under the relevant Act and honour your obligations under the lease agreement to ensure you stay out of the legal minefield.

The retail tenancy law is very clear in most Australian states:

A landlord in a retail lease must not, in connection with the lease, engage in conduct that that is misleading or deceptive to a tenant or guarantor. A party who suffers damage by reason of misleading or deceptive conduct of another party may make a claim for compensation.

Because the laws are different in each state we've outlined the requirements of each state on the following page

• Retail Leases



All of your rights and obligations are contained within the following Acts.





• New South Wales: The Retail Leases Act 1994


• Northern Territory: Business Tenancies (Fair Dealings) Act.


• Victoria: Retail Leases Act 2003 and the Retail Leases (Amendment) Act 2005


• Western Australia: Commercial Tenancy (Retail Shops) Agreements Act 1985


• Queensland: Retail Shop Leases Act 1994


• South Australia: Retail and Commercial Leases Act 1995


• Tasmania: Fair Trading (Code of Practice for Retail Tenancy) Regulations 1998


• ACT: Tenancy Tribunal Act 1994 and the Commercial and Retail Leases Code of Practice.