Business Legal Checklist

Business Legal Checklist

1. Does your Lease expire soon? Do you need to request a new Lease? A Lease over your business premises is an important part of your business. You should check when the Lease expires and, if soon, you must negotiate a new one with your landlord immediately. Otherwise, it will be highly disruptive to have to find and move to new premises.
2. If you are entitled to renew the Lease, when does the option period expire? Normally, you will have a three month window to exercise the option for a further term of years. You should check when this option period ends because if you miss out then it will be too late and you may be forced to vacate your business premises at the end of the Lease.
3. If you operate the business in partnership with others, do you have a written partnership agreement? If there are two or more owners of the business it is highly advisable to set out the rights and obligations between them in a written partnership agreement rather than just leaving it to chance. The agreement will cover many aspects including division of profits, salaries, roles of each partner, how disagreements will be handled and the rights of partners if one wants to leave or the business is sold.
4. If you operate the business through a company, do you have a written shareholders agreement? Where the business trades by way of a company it is highly advisable to have a shareholders agreement which will regulate the management of the company and will include clauses about various matters such as decision making, the rights of shareholders to appoint and remove directors, contributions by shareholders and resolution of disputes.
5. Do you know your obligations as a business to consumers under the Australian Consumer Law? The Australian Consumer Law imposes many obligations on retailers when selling their products or services to consumers who have corresponding rights and remedies available to them. For instance, retailers should be aware of the obligation not to engage in misleading or deceptive conduct, not to have unfair contractual terms and to comply with various consumer guarantees.
6. Do you know your rights under the Australian Consumer Law as a business consumer with respect to business suppliers? The Australian Consumer Law also offers businesses consumer rights against suppliers of goods and services if the upfront price payable under the contract is no more than $300,000.00 or $1 million if the contract is for more than 12 months. It is worthwhile to ascertain what those rights are if you have a dispute with a supplier.
7. Does your business need standard Terms and Conditions to give to consumers? Having standard terms and conditions to give to your customers or clients helps to avoid uncertainty and misunderstandings which will ultimately help with cash flow. If the rights and obligations of the parties are set out in writing this will offer clear protection to the business.
8. Does your business need a standard Contract for consumers to enter into? Typically, a business will provide a customer or client with a standard contract if the transaction requires more complexity than simple terms and conditions so that the contractual clauses can cover many areas regulating the dealings between the parties. Although the purpose of the standard contract is to avoid negotiation with the customer or client care must be taken not to offend the unfair contract provisions of the Australian Consumer Law.
9. Do you have any difficulties with outstanding debtors that need to be finalised? Cash flow is important so having outstanding debts over an extended period can have a negative effect on the efficient running of the business. You should be aware of your options to recover money that is owing and, if substantial enough, legal assistance can be an effective tool.
10. Do you have any disputes with suppliers that need to be resolved? If you have a legal dispute with one of your suppliers, you may have rights under the Australian Consumer Law or under general contract law. In any case, knowing where you stand is important and a lawyer can assist you in determining the best way forward.