Legal Issues
Commencing a business requires consideration of various legal issues. At Bentleys we are able to work with you and your solicitor in assisting with the resolution of any legal issues. We can also provide referrals should you not have adequate legal representation.
Some of the legal issues you may need to consider are:
Contract for purchase
The contract document will contain numerous clauses which will impact on how the purchase of a business is transacted, including timing, items being sold, representations as to the condition of various items and whether other contracts are being passed on. Also, it can have terms which can impact on the future viability of the business, e.g. restraint of trade clauses.
Lease Agreement
Should the business be operated from rented premises, a lease agreement will be necessary to ensure continued operation from those premises. It is important that the lease agreement does not impose conditions and costs upon you greater than the business previously had to meet. Should it do so, part of your expected return from the business will be eaten up with the additional costs, and in essence, you could have paid too much for the business.
Supplier and Customer contracts
The business may currently have contracts with either customers or suppliers that may guarantee its sales or product to sell. It is important that these contracts be reviewed and transferred to you as the new owner.
Employment Contracts
Wills
Whilst a will is not part of a business structure, the advent of acquiring a business may lead to your will needing to be updated. Our team at Bentleys are able to assist you and your solicitor with implementing a will in these new circumstances.