Contracts

Bankruptcy is a legal process for individuals who can’t repay their debts. It usually lasts three years and may involve asset sales, income contributions and restrictions on financial activities. We can help you understand your rights including the consequences of bankruptcy and whether alternatives like debt agreements or personal insolvency agreements may be more suitable. The team at Lynn & Brown lawyers always strived to provide clear and up front advice about what options are available to you, so you feel confident about achieving them.

There can be a few and they can be quite serious. If a company continues to trade while insolvent then the directors may become personally liable for debts incurred. This is known as insolvent trading and is a serious offence under the Corporations Act. Our lawyers can help directors understand their obligations and the risks associated with each stage of insolvency. This helps you minimise risk and manage exposure if insolvency becomes likely.

An agreement to buy and sell a business can be formed in a multitude of different ways. You should have thoroughly reviewed the financial history of the business and ensure appropriate warranties and guarantee are in place. You should also ensure the seller is restrained from competing with you in the future, that all plant and equipment is unencumbered and is in full working order and that customers will come across to you. Don’t sign anything before speaking to a lawyer.

A contract requires fundamental factors to be a valid contract:

• An offer;
• Acceptance;
• Consideration;
• Intention to enter into a legally binding arrangement.

It will depend on the contract and the nature of the breach. Some contractual breaches are considered to be material breaches that will give a right to termination and damages. Some breaches will require you to issue the other party with a notice giving them a right to rectify the breach. If the breach is not rectified, then the contract can usually be terminated, and damages sought. Each contract is different, and we always suggest seeking legal advice before taking precipitous action.

Operating your business or investments through a company provides a lot of protection for those operating the company, known as directors. However, increasingly, in Australia the protection of directors is being wound back. Directors can be liable for some company’s debts, such as, PAYG and staff superannuation. Also, if the company trades insolvently and certain occupational health and safety penalties.

Australian Consumer Law is the law that governs the sale of goods and services in Australia. It is federal law and, therefore, it is the same across Australia. There are many aspects to Australian Consumer Law, from misleading and deceptive conduct, adversity rules, consumer guarantees, unfair contract terms and many more.

If you are considering becoming a franchisee, before entering into any franchise agreement it is vital that you seek legal advice. In addition, a prospective franchisee should obtain financial advice in relation to the financial viability of the venture.  You should be aware of rights to introduce other franchisees in locations near you, ongoing costs, obligations to buy stock off the franchisor, marketing costs and term of the franchise amongst other things. Franchise agreements can be complex and cover many key aspects to the agreement like fees, intellectual property and equipment.