What are contracts?
- Legally binding agreements that may be verbal or in writing – written contracts are better because the terms of a well written contract are clear
- Documents that requires an offer, acceptance of the offer and consideration, (something being done in part performance of the contract such as paying a deposit)
- A contract for the sale of a business has a similar template to the land sale agreement and a large number of specific terms
- A sale of property contract has a large number of standard terms that reflect the large amount of legislation, and court made law that has developed around the sale and purchase of a home. Terms can be added to make it specific to the individual sale.
Parties in contracts
Contracts are drafted to reflect your specific requirements and should indicate the agreement you have made. It is also important to identify the parties to a contract. This may seem obvious, but you often hear business owners saying a particular business asset is ‘theirs’, when technically and legally this may not be the case. The person signing the contract maybe:
- Acting in a personal capacity outside his business
- A sole trader (with or without a registered business name)
- In a partnership (again, with or without a registered business name).
Life goes on
We recognise at Collins Legal that life does not stop when you are a small business owner, and perhaps more than ever you need to get all your legal ducks lined up! Why not get your personal life in order at the same time as your business? Don’t leave anything to chance. We have witnessed so many distraught families and broken relationships, and watched people lose everything they have ever worked for when they have not had the appropriate legal documents in place. We don’t want to see you added to that list.