It never ceases to amaze that people will enter into Contracts for large sums of money without initially seeking advice on the nature of the agreement they are entering into.
In fact, at times, people are preparing their own agreements which cover the bare necessities of the agreement but make absolutely no provision to protect their rights should there be a dispute in the agreement.
In the past month, at least three self-made Contracts have appeared in our office where people are seeking advice as a result of disputes having arisen or the person being misled as to the nature of the business. The cost to these people to take action will run into tens of thousands of dollars if the matter proceeds to a hearing before a Judge.
Had these people entered into a standard REIQ Contract for the purchase of a business, they could have avoided Court proceedings and the exorbitant amount of money that goes with it. However, even that document requires special conditions to protect your properly.
The problems that we have been faced with include (and are not limited to) the following:
1. Failure to properly provide for a restraint of trade provision.
2. Failure to determine whether it is GST inclusive or exclusive.
3. Failure to confirm that a supplier, whose goods were necessary for
the business, will assign their rights to the incoming purchaser to
enable the business to continue.
4. Failing to obtain consent to the Lease as well as determining how
long the Lease has left to run.
5. Failing to account for employee’s entitlements before settlement.
6. Failing to determine how to set up the business structure to enable
the best tax planning options.
7. Failing to set up the business in the best way possible to protect a
person’s assets and investments.
If you are uncertain as to what may be required, please obtain the appropriate legal and accounting advice. The cost prior to completion is insignificant compared to the costs if problems arise and litigation is undertaken. Please feel free to call us on 1300 HATZIS (1300 428 947) (428 947) to discuss this with a solicitor.
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