Business Contract: Fear Losing It...Read It
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    Your Online Business Contract: Before you Fear Losing It, You’ll Never Love to Read It

    This really is a sole proprietor business contract sad story. A cautionary tale for adventurers inside the land of small enterprise. In Kill a Mockingbird, Harper Lee writes, “Until I feared I would personally lose it, I never loved to see. One is not going to love breathing.” After being threatened with losing her reading privileges, Scout becomes alert to her need to read on.

    I’m uncertain if this sole proprietor ever learned to love reading business contracts. But he had 300,000 excellent reasons to.

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    A sole proprietor was sued for “failing to cover amounts due...including an accounts receivables balance of $96,397, and rental obligations more than $193,000 (together, an amount greater than $289,000).” He didn’t debate that he’d paid. Instead, he took the highroad and counter-sued. What gave him the confidence?

    Successful Sole Proprietor's breach of contract business Contract

    A skilled wireless telecommunications retailer, the only proprietor was already successfully operating two retail stores as he was served with a deal. Manage and operate three preexisting wireless locations in several shopping malls. He was told his partner had dealership agreements which has a major wireless provider. He was told his partner would manage securing the leases. He was told each store was already clearing at least $5,000 in net profit on a monthly basis. He was told he “would be capable of keep all of the leftover inventory, including phones, accessories, computers, printers, and...point of sale software system, without charge.” He was told which he could draw on a line of credit that his partners would put in place for him. He was told...you get the picture.

    Trouble around the Horizon

    After three months, this experienced sole proprietor realized he had problems. Yes, his partners had the ability to find the leases assigned, but he has never been given a duplicate. Yes, the shops were stocked with inventory, but he would now must pay because of it. He learned that “much from the inventory was outdated, used, returned, or defective.” Yes, a credit line was set-up for him, but he now were required to apply it to obtain inventory which might be sold. Yes, his partners provided him with financial statements showing approximately $5,000 every month per store. But once he created their own profit and loss statements, he found losses for the similar period. Within a word, a debacle. And the fat commissions and profits he thought he’d be making? Nonexistent. Worse, his partners were “offsetting the outstanding balance on his credit line against commissions and residual payments.” So as an alternative to creating wealth, he was sliding further into debt.

    Fighting For Survival

    This sad tale ended up from the Nyc Supreme Court with the sole proprietor on the hook for “$116,844.92 in rent due.” He counterclaimed arguing, partly, this:

      the Management Agreements that he’d put into “were mere agreements to agree as the leases contained the many material terms necessary to the transaction involving the parties;”

      that since he did not receive copies with the leases before he signed the Management Agreements, the agreements lacked key terms, were vague, indefinite, and unenforceable;

      the Personal Guarantees that he’d signed were unenforceable mainly because they refered to the Management Agreements, that had been merely agreements to agree and consequently unenforceable.

    Court Hands a Deadly Blow

    A Legal Court rejected all of the sole proprietor’s arguments. After reviewing this company contracts, the Court found:

      the Management Agreements were enforceable because, “explicit language...set[] forth the mutual duties owed,” the agreements failed to contain “conditions precedent” requiring outside action before the agreements became enforceable, and “[t]he language from the...Agreements [shows]...the parties intended those to be binding;”

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