Category: Company/Commercial

Heads of Terms – Do I Need Them?

Heads of Terms: Do I Need Them? Both parties in any commercial transaction should consider the need for Heads of Terms. The Heads of Terms document will summarise the basic points of principle that have been agreed between the parties. They should not go into detail – this will be contained in the full Sale […]

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Company Wills & Cross-Option Agreements

The majority of people will ensure that they have a Will to look after their personal finance but what about their business? The death of a shareholder and director, especially in a small/medium company can have a major impact on the business if they have not planned for such an event. It is also not […]

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Confidentiality Agreements (Corporate Snapshot)

Do I need a Confidentiality Agreement? If you are looking to be involved in a sale or purchase of a business then the answer, almost certainly, is “yes, you need a confidentiality agreement”. Why do I need a Confidentiality Agreement? Whether an asset or share acquisition, parties will need to get together to start negotiations. […]

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Independent Legal Advice (ILA)

Independent Legal Advice (ILA) is normally a requirement of a lender for secured lending i.e. property related work. There are various different types and which one is relevant to your situation will depend on what type of borrowing you require and the Lender’s requirements. All Lenders are different and use different forms and have different […]

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Gentlemen’s Agreements

If you want to do business with a gentleman (or lady), why on earth would you rely on their word? The question must be “why take a chance?” At its best, a gentlemen’s agreement (realistically this is a verbal agreement) is as enforceable (or unenforceable) as any other verbal contract. Much will depend on trying […]

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Lawful Monitoring of Employees’ Emails

Employers frequently include a policy expressly entitling them to monitor employee emails and work related messaging accounts. The monitoring of employee emails and messaging enables employers to obtain crucial information about unlawful employee activity. Preventing misuse of computer equipment Primarily monitoring is intended to ensure employees are not misusing the company’s computer equipment and messaging […]

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Disclosure Letters

Disclosure Letters Disclosure letters exist in deals for the sale and purchase of assets or shares in a company, although they are normally more relevant in a share sale. The idea is for the seller giving warranties within the Sale and Purchase Agreement to “flag up” in a Disclosure Letter any areas where “disclosures” need […]

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Shareholders Agreements Checklist (Corporate Snapshot)

Shareholders’ Agreements Checklist Our checklist is an excellent summary of the points you should be aware of when entering an agreement. For full details, see our advice on Shareholders’ Agreements. 1. Nature of Company and Finance What will be the nature of the activities carried on by the company? Where will the business be based? Will […]

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Gentlemen’s Agreements (Corporate Snapshot)

Gentlemen’s Agreements So what is the so-called ‘Gentlemen’s Agreement’? More often than not a Gentlemen’s Agreement will be a verbal agreement, i.e. the terms of the contract agreed orally.  Although verbal agreements are enforceable and valid (contracts do not need to be in writing), where a dispute arises between parties to an agreement, the absence […]

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Why Have Shareholders’ Agreements?

Shareholders’ Agreements Why have a Shareholders’ Agreement? The Articles of Association of a company will bind all shareholders automatically and as soon as they become a shareholder in a company. A shareholders’ agreement is a contract between specific named individuals and so is incapable of binding anyone else unless they also become a party to […]

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Warranties & Indemnities (Corporate Snapshot)

The Due Diligence Procedure Warranties & Indemnities In a business acquisition, (whether an asset or a share acquisition), there will almost always be an element of risk for the buyer. To try to understand the extent of any risk(s), the buyer may raise a number of enquiries (‘due diligence enquiries’) in respect of the affairs […]

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