There are many agreements needed in business. In fact, commercial lawyers would tell you that almost every contract is an agreement of some kind and all are important parts of running a business. But when it comes to the Buy Sell Agreement, some businesses don’t have one and this can really complicate matters. What is a Buy Sell Agreement?
It is a document that details what will happen should one partner suddenly die or be incapacitated. Other names for the document are Business Succession Agreement and Business Will. Having it in place will enable the business to continue running smoothly when and if a partner dies or has a stroke so that they are mentally incapacitated.
Having this document means the partners have agreed to buy out the share of the person who has died or become incapacitated. The funds that are paid will go to the family of the deceased and can really help them in their time of need. However, they may go to another person that is specified in the document.
When buying a property, few people fully understand every aspect of the contract, partly due to the terms that are used in it. This is why it is essential to have your property lawyers go over the contract and explain everything to you. Even then, they may miss something thinking it is obvious because they are used to it, whereas to the first home buyer especially, it may not be the least bit obvious.
One term that may seem obvious when given due consideration is often missed in amongst all the other terms and that is buying “as inspected’. If the term is hidden amongst a lot of other jargon it can be less than clear – or people just don’t think about it. Even if they realise it means that the property they purchase will be in the same condition it was when they inspected it, they may not realise what the ramifications are.
The advent of the Internet has allowed many people to start up business buying and selling. These people are often not trained in business, so don’t know all the laws that govern them. Without commercial lawyers to help them they can easily break a consumer law without realising it, but ignorance is not considered an excuse, so they may still find themselves in trouble.
Since many of those Internet businesses are to do with selling goods of some kind to the public, here are 7 tips on Australian Consumer Law (ACL) that you may not have known, if you are a new start-up business.
If a customer finds a small defect or flaw in the good they purchased, they can ask for a refund, repair or replacement. Most will want the former, but in fact, your customer must accept the free repair if it is offered to them. It is only if the flaw makes the product dangerous or unsafe, if the product is different from what was advertised or displayed, if the product can’t be fixed easily or if the person would not have bought the product had they known about it, that your business must replace or refund it.