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Articles By james mark

Business Structures - Partnership Ins And Outs   By: james mark
Introduction: A partnership is a relationship or association between two or more persons with a view to profit. The persons may be individuals or companies. Unlike a company the partnership is not incorporated. The rights and obligations of the partnership are governed by a partnership agreement which may be made in writing, verbally or by implication. It is also governed by the Partnership Act. Net Lawman recommends a written agreement is made to avoid disputes in the future. A partnership enters into an agreement in the name of its partners. Usually each partner is jointly liable for the obligations under the agreement. Accounting and records: Unlike companies, partnerships do not have any special legal accounting or recording requirements. Of course it is good practise to keep proper accounting records for taxation purposes. Income and losses are allocated to each partner according to their shareholding in the partnership; therefore it is important the accounts properly record income and loss so that each partner can calculate their individual tax. Partnership assets/liabilities: Everything in a partnership is shared in accordance with each partner's shareholding in the partnership. Each partner’s shareholding is recorded in the partnership agreement. Similarly, assets and liabilities are shared between the partners in accordance with each partner's shareholding. Note, unlike companies, partnerships have unlimited liability. This means that if one or more of the partners is found liable for doing or failing to do something, then all the partners in the whole partnership are personally liable. In a company, shareholders' liability is limited to the extent of their shareholding, which means the most they can lose is the value of their shares. In a partnership, on the other hand, there is no limit on the potential liability of partners. Partnership shares: There is no legal requirement for either party to hold a certain number of shares. The amount of shares held by each partner will depend upon the agreement reached between the parties. The proportion of shares held should be recorded in the partnership agreement. The shareholding may be a fixed amount or a percentage. The amount should take into account a possible increase or decrease in the value of the partnership business and assets. The shareholding may or may not reflect the liability or profit share of each party. For example, a party may have contributed 50% of the assets but may be liable for 75% of any liabilities. Similarly, the party may only be entitled to 40% of the profits of the partnership business. The agreement: The partnership agreement should set out all the terms of the relationship including the following: • Partnership shares; • Partnership assets; • Distribution of profits; • Partnership liability. How liability is to be apportioned between the partners; • Terminating the partnership/buy back of shares; • Disputes resolution. Tax issues: Partnerships are not taxpayers, but the individual partners must still pay tax. The income of a partnership and its losses are apportioned according to each partner's shareholding in the partnership. Each partner must include their share of the partnership income and/or loss in their own personal tax return. Capital gains and losses on partnership assets are also apportioned amongst the partners. Terminating the partnership/buy back: There might come a time where one partner ‘wants out’. In this case, there are a number of possibilities: • If a partnership is created for a particular purpose, then after the purpose is achieved or abandoned, the partnership dissolves; • If a partnership is created for a fixed period, then after the period is over, the partnership dissolves; • Once a partner resigns from a partnership or dies, the partnership is considered to be terminated; • If there are still partners remaining then they will be treated as partners in a new partnership; • If a partnership is engaged in unlawful activities, it will be dissolved by the law. These are not the only ways in which a partnership terminates. Often the partnership agreement will provide for situations in which the partnership terminates.(read entire article)
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Category : Legal

Commercial Lease Agreements For Landlord And Tenant   By: james mark
The commercial property lease agreement or commercial lease agreement is appropriate for the tenancy of almost all types of commercial premises such as offices, warehouses or industrial property. A solid commercial lease contract can protect the investment by defining relationship with the tenants and protecting from possible liability. In fact, a well-crafted commercial lease agreement should be the foundation for the ongoing relationship between landlord and the tenant. Whether a person is going into business or a landlord wants to rent a property to tenants, both of these persons are going to have to enter a commercial lease agreement and commercial lease contract. Commercial lease agreements are essential whenever a tenant aims to rent a property for commercial use, or when a landlord wants to take advantage from a commercial space with paying tenants. No matter which side of the equation the person is on, there are individualities and special characteristics to commercial lease agreements a landlord and the tenant will need to know before they enter one. Even if a person is just looking for a simple lease of some office space or buying a property to lease it as commercial property, they should be ready before taking that step. Here is what the essential information which every individual needs to know: What is a commercial lease agreement? Just similar to any auxiliary leases, whether it is for any sort of equipment, car and flat or home, commercial lease agreements permit landlords and tenants to go into a commercial tenancy agreement where the tenant can use the space and pay the landlord rent for that opportunity. The distinction is commercial properties are for business purposes. No matter if it is a doctor’s office, a factory or a retail store, if a person wants to use a space for commercial purposes; he/she will have to enter a commercial lease contract. Why is a commercial lease agreement required? A commercial lease agreement protects both property owner and the tenant by setting out all the terms and conditions agreed between the landlord and tenant. A commercial lease contract ensures that tenant can operate the business from the premises. There are normally many issues in the commercial lease and the lease can last for a long time. Unless these terms are in writing, there will still fair bit of chances of disagreements as to what was previously agreed. When to use a commercial tenancy agreement? If anybody wants to rent a property out for commercial purposes, or if anybody wants to rent such a space, he / she will need a commercial lease agreement, because commercial activities typically see much higher traffic (customers, deliveries and employees). These lease contracts are to be in command of the property and the special conditions that may come up in commercial spaces. Commercial tenancy agreements are distinctly different from residential tenancy agreements, and parties from either side need to be conscious of this. What makes commercial lease agreements different from residential lease agreements? Commercial properties are intended to be used as business places. No matter if it’s a convenience store, a tailor shop or a factory; all of them place particular demands on the owner and the tenant. Commercial lease agreements typically have special clauses stating what actions can go on, who is allowed on the location, protection and security concerns, privacy rights and property-owner access rights, as well as other business-specific clauses. What is the main content of commercial lease agreement? There is a lot that needs to go into any commercial lease contract for a commercial property. Since it will hold a business, Commercial Lease form often last for many years at a time. They also need to clearly state the terms of legal responsibility, renewal, transfer rights and other issues. Commercial lease forms and agreements are typically much longer than residential lease forms and agreements, and their individual clauses are designed to meet the needs of the businesses that plan to function on the property. Other Commercial Lease Agreements: There will be many details in a commercial lease contract and most will be of a standard nature as with other types of tenancy contracts. The tenant should look out for clauses regarding repairs to the property, and the responsibilities of the landlord. There will also no doubt be clauses on health and safety responsibilities, and the resale of lease rights. Business may be complex. If you want to rent office space or store-front space, you need to make sure your commercial lease agreement gives you sufficient freedom so you can run your business your way. But also sufficient protection to make sure you can’t be kicked out at will. If you are a property-owner, by signing a commercial lease agreements you want to make sure you protect your property and not compromise its value by renting to a party that will cause you problems. Either way, knowing how to make complete commercial lease agreements, commercial lease contracts and commercial lease form is certain and essential.(read entire article)
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Category : Legal

Is Your Terms And Conditions Are Not Incorporated?    Submitted as: Robert Mark
A business contract of terms and conditions is an agreement between two parties that might be written down, verbally agreed, implied, or a mixture of all of them.(read entire article)
View : 140 Times
Category : Legal