Rogerson Kenny Business Accountants Melbourne

Legal Issues to Consider

There are a number of key areas where a solicitor can assist you such as contracts and agreements, negotiating the lease, insurance claims and representing your interests in dispute resolutions with authorities or other businesses. If you require a solicitor please contact our office for a referral.

Contracts

A contract is a binding legal agreement, which is created when there has been an offer, an acceptance of the offer, consideration (usually the price of goods or services supplied) and an intention by the parties to enter into a legal relationship. There are many types of contracts that will affect your business. Not only will you contract with your customers but you will potentially also enter into agreements concerning contracts:

• For the purchase of a business
• For the lease of your business premises
• For the supply of financial services such as an overdraft facility
• With suppliers and customers including the terms of trade
• Of employment with your employees
• For the supply of telephone, internet and utility services

With customers, it is important to establish a system that records your terms of agreement or trade so that you avoid disputes later on. It can help with the collection of bad debts and the system could be as simple as providing a quote that the customer accepts by signing. Commonly the terms of agreement are often specified on the back of quotations. Remember, if a contract has not been signed it does not necessarily mean that there is not a legal contract. A binding legal agreement may have been established by other means, such as the conduct of the parties and what was said between them.

Leases

A lease is a special type of contract between the lessor (owner) and the lessee to use the property. A lease can relate to land and buildings or to personal property such as motor vehicles, photocopiers or telephone systems. Where the lease relates to land and buildings, the owner is called the 'landlord' and the lessee is called the 'tenant'.

The terms of the lease are generally negotiated between the landlord and the tenant and the main issues that need to be addressed in the lease include the term of the lease, the amount and frequency of the rent, details of the tenant's responsibility for the property outgoings, permitted uses of the property, the option if applicable and the bond or bank guarantee if applicable. It is advisable to consult with a solicitor to assist you in negotiating the terms of your lease.

Most leases hold the lessee responsible for keeping the premises, fixtures and fittings in good repair. Many leases provide for payment of all or a portion of the rates, insurance, maintenance, and so on. Make sure these are clearly stated as they are additional to your base rent. If you vacate the premises before the lease expires, you may still be liable for payment of rent and ongoing costs if a new tenant cannot be found.

Before signing the lease the lessor must provide the lessee with a signed copy of the lease. If the lease is for a retail shop, the lessor is also required to provide a Disclosure Statement to the lessee at least seven days before the lease is entered into. Both parties should make sure that they speak to their solicitor, accountant and the local council (to be sure there is approval for the use) before they sign the lease.

Do You Need A Will?

Making a Will is something we all know we should do, but like exercising daily and eating a balanced diet, it's something many of us never get around to until it's too late. It is one of the most important documents you will ever sign because you are 'giving away' almost everything you own. It is therefore important to ensure it reflects your current wishes and distributes your estate in the most beneficial and tax effective way. You must be 18 years of age and be of sound mind, memory and understanding to make a Will.

A Will is the foundation of good estate planning. It's critical to obtain competent legal help in drafting your Will because a poorly drafted will can be the cause of endless trouble for your surviving family and beneficiaries. Dying without a Will can be costly and creates added stress for your family at a time that is already difficult. In addition, you risk your estate being distributed according to strict government requirements rather than your wishes. This makes your estate difficult to administer and it will take longer to be finalised, resulting in increased costs. You may also lose the choice of who benefits from your estate.

What do you need to consider?

• Do you have an effective, current Will?
• Do you believe you may require the creation of more complex trusts within this Will?
• Do you have beneficiaries with special needs?
• Are you concerned there won't be enough money to satisfy your family's needs in the future?
• Do you need to consider any tax or other implications of your estate planning arrangements?
• Who is to benefit from your Life Insurance and Superannuation?
• Do you have property held as tenants in common?
• Does anyone but you know where your tax records and supporting tax documents are located?
• Does anyone know who your accountant is? Your lawyer? Your broker?

We recommend you review your Will every couple of years, or whenever your circumstances change such as starting a business. Call our office on (03) 9802 2533 if you would like to discuss any aspect of your Will or require a referral to a Solicitor to draft or review your Will.

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