Legal Advice Blog: Legal Advice, Case Insights, & Local Law Information

When another company breaches its contract with your business, you may end up scrambling to find an alternate service provider or supplier. Contract breaches can be very expensive. They can delay or complicate operations at one business or force a company into a position where it defaults on an agreement with a third party. When businesses take action over breach of contract issues, the focus is often on recovering losses in the form of damages. However, a company could also request specific performance as part of a breach of contract lawsuit. Specific performance involves a judge ordering a party to fulfill its obligations under the contract. Is specific performance the right solution in your case? THE BEHAVIOR OF THE OTHER PARTY CAN DETERMINE THE BEST OPTION If the other party failed to fulfill their contractual obligations for some technical or complicated reason and would likely still prefer to do business with your company, then an order of specific performance might convince them to absorb the necessary losses caused by their initial failure and move on in their relationship with you. However, litigation and a court order to perform work or deliver certain materials or goods might result in resentful behavior from the other party. You might end up receiving lackluster services or substandard materials from the other party because they begrudged the obligation to fulfill their contract with you. A careful review of what the other party failed to do and their current attitude toward your organization can help you determine if specific performance would be a reasonable solution or likely to result in future disappointment. EVERY CONTRACT DISPUTE IS A UNIQUE CHALLENGE There is no one solution for breach of contract matters that will work for every business dealing with a default or similar breach of contract issue. The nature of your relationship with the other company, the losses you suffered because of the breach of contract and your potential future relationship will all influence the best approach to a breach of contract matter. Sometimes, negotiating a settlement outside of court is the best option. Other times, going to court and asking a judge for a particular solution may be the better choice. Learning more about how the courts help resolve business disputes can facilitate a faster solution for your contract issue.

Property taxes are assessed on both residential and commercial properties, and the total costs fluctuate every year with the value of those properties. However, they can be quite substantial, with tens of thousands of dollars assessed on major pieces of real estate. Generally speaking, these property taxes have to be paid by whoever owns that property. The real estate investor, who is renting out the space, would then be liable for the tax burden of that property. The tenant who is simply leasing the space has to pay a monthly rent, but they should not have to worry about these additional costs. They just have to stay current on the rent. ADDING A NET That being said, there are certainly ways to set up a commercial lease so that the tenant has to pay the property taxes. One way to do this is with a single-net lease. It simply bundles the property taxes in with the monthly rent, and these obligations are then given to the tenant instead of the property owner. Another option could be to use a double-net lease, which adds property insurance, or a triple-net lease, which adds in the cost of maintenance and upkeep. The key to doing this is to understand your obligations in advance and to set it up this way from the beginning. A landlord who has simply used a basic lease requiring merely rent payments cannot suddenly change their mind and demand payments for property taxes. But if they provide the tenant with a single-net lease at the beginning, then the tenant knows exactly what they are agreeing to and will be liable to cover those costs. To make sure everything goes smoothly, be sure you know what legal steps to take.

Property taxes are assessed on both residential and commercial properties, and the total costs fluctuate every year with the value of those properties. However, they can be quite substantial, with tens of thousands of dollars assessed on major pieces of real estate. Generally speaking, these property taxes have to be paid by whoever owns that property. The real estate investor, who is renting out the space, would then be liable for the tax burden of that property. The tenant who is simply leasing the space has to pay a monthly rent, but they should not have to worry about these additional costs. They just have to stay current on the rent. ADDING A NET That being said, there are certainly ways to set up a commercial lease so that the tenant has to pay the property taxes. One way to do this is with a single-net lease. It simply bundles the property taxes in with the monthly rent, and these obligations are then given to the tenant instead of the property owner. Another option could be to use a double-net lease, which adds property insurance, or a triple-net lease, which adds in the cost of maintenance and upkeep. The key to doing this is to understand your obligations in advance and to set it up this way from the beginning. A landlord who has simply used a basic lease requiring merely rent payments cannot suddenly change their mind and demand payments for property taxes. But if they provide the tenant with a single-net lease at the beginning, then the tenant knows exactly what they are agreeing to and will be liable to cover those costs. To make sure everything goes smoothly, be sure you know what legal steps to take.

There are times in business when it feels like it makes sense to pool your knowledge, capital and expertise with another person. It gives you options that you wouldn’t otherwise have to work outside your comfort zone and to be a part of projects that excite you. As with any relationship, it’s important you know just what you’re getting into. It makes sense to iron out how you want the partnership to work before signing any agreements. If it’s your first time forming a real estate development partnership, here are a few considerations to have in mind. FIND A PARTNER WHO IS A GOOD FIT FOR YOU Sharing business decisions with another person can be difficult. It’s important to be sure that the partnership is the right thing for you before you sign up. Look for qualities in a partner that you share and feel you can trust. CHOOSE THE RIGHT TYPE OF BUSINESS ENTITY Generally, people choose to operate under either a Limited Liability Company (LLC), Limited Liability Partnership (LLP) or a Real Estate Limited Partnership (RELP). Which type of entity is right for you will depend on a number of things including how you wish to be structured and the nature of your business. HAVE A PARTNERSHIP AGREEMENT IN PLACE This document is used to secure, in writing, the role and responsibilities of each partner. It should explain how finances will be dealt with, the goal of the business partnership and the commitment of each party to reaching that goal and how disputes will be handled. This is an important document to have in place as it can be used in legal proceedings should one party not meet their expectations under the agreement, Forming a real estate development partnership can be incredibly beneficial for taking your business to the next level. Make sure you’re protected personally by having all the necessary documentation in place.

There are times in business when it feels like it makes sense to pool your knowledge, capital and expertise with another person. It gives you options that you wouldn’t otherwise have to work outside your comfort zone and to be a part of projects that excite you. As with any relationship, it’s important you know just what you’re getting into. It makes sense to iron out how you want the partnership to work before signing any agreements. If it’s your first time forming a real estate development partnership, here are a few considerations to have in mind. FIND A PARTNER WHO IS A GOOD FIT FOR YOU Sharing business decisions with another person can be difficult. It’s important to be sure that the partnership is the right thing for you before you sign up. Look for qualities in a partner that you share and feel you can trust. CHOOSE THE RIGHT TYPE OF BUSINESS ENTITY Generally, people choose to operate under either a Limited Liability Company (LLC), Limited Liability Partnership (LLP) or a Real Estate Limited Partnership (RELP). Which type of entity is right for you will depend on a number of things including how you wish to be structured and the nature of your business. HAVE A PARTNERSHIP AGREEMENT IN PLACE This document is used to secure, in writing, the role and responsibilities of each partner. It should explain how finances will be dealt with, the goal of the business partnership and the commitment of each party to reaching that goal and how disputes will be handled. This is an important document to have in place as it can be used in legal proceedings should one party not meet their expectations under the agreement, Forming a real estate development partnership can be incredibly beneficial for taking your business to the next level. Make sure you’re protected personally by having all the necessary documentation in place.

Completing a commercial property and getting ready to lease is a proud moment for developers. You can lease your space to business owners for offices or industries for warehouses, data centers and other industrial activities. Further, you may lease your property for mixed uses, in which case your tenants may be malls, restaurants, department stores, and so on. Thus, commercial real estate (CRE) is expansive and investing in it offers significant advantages. However, to enjoy these benefits, you need contracts to protect your investment. Here are three factors to include in your commercial lease agreement. PERIODS Your tenants need to know about different periods. Examples include the period in which the lease is considered active, the renewal period of the lease, when insurance coverage requirements will go into effect, the due date of the security deposit and the period for giving notice of termination of the lease. You should write about these periods in individual clauses. USAGE You should explain how a tenant can and can’t use the property in the agreement. This may include the products and services they may offer or even the quality level of their operation. Another aspect is the space to use. If you are leasing to one business, this may not be a major concern. But if you will have co-occupancy spaces, a tenant should know what portion of the property they can use. MAINTENANCE Maintenance is one of the leading causes of landlord-tenant disputes. Thus, your agreement should have this clause, clearly explained to avoid misunderstandings. You should state when you are responsible for maintenance and when a tenant will be held liable. You should draft top-notch commercial lease agreements. It is essential to learn how to negotiate, draft and review agreements to protect your rights.

Completing a commercial property and getting ready to lease is a proud moment for developers. You can lease your space to business owners for offices or industries for warehouses, data centers and other industrial activities. Further, you may lease your property for mixed uses, in which case your tenants may be malls, restaurants, department stores, and so on. Thus, commercial real estate (CRE) is expansive and investing in it offers significant advantages. However, to enjoy these benefits, you need contracts to protect your investment. Here are three factors to include in your commercial lease agreement. PERIODS Your tenants need to know about different periods. Examples include the period in which the lease is considered active, the renewal period of the lease, when insurance coverage requirements will go into effect, the due date of the security deposit and the period for giving notice of termination of the lease. You should write about these periods in individual clauses. USAGE You should explain how a tenant can and can’t use the property in the agreement. This may include the products and services they may offer or even the quality level of their operation. Another aspect is the space to use. If you are leasing to one business, this may not be a major concern. But if you will have co-occupancy spaces, a tenant should know what portion of the property they can use. MAINTENANCE Maintenance is one of the leading causes of landlord-tenant disputes. Thus, your agreement should have this clause, clearly explained to avoid misunderstandings. You should state when you are responsible for maintenance and when a tenant will be held liable. You should draft top-notch commercial lease agreements. It is essential to learn how to negotiate, draft and review agreements to protect your rights.

There’s no question that the commercial real estate market has weathered significant ups and downs over the past several years. Oftentimes, upping the rent on a property seems like the most obvious way to account for challenging marketplace conditions. Yet, inflating commercial property rents is a risk that isn’t always worth taking. Rental rate inflation above the market rate is always a risky business. But it is often a particularly risky proposition when an anchor tenant is either negotiating an initial rate or is looking to renegotiate a rate that has been inflated historically. IT’S ALL ABOUT RISK VS. REWARD Entering into a commercial lease with a tenant involves a measure of trust. On the one hand, you need to be able to keep your business afloat during challenging times. On the other hand, if your tenant believes that you’re inflating their rent to an unreasonable extent, they may understandably feel like you’re taking advantage of their trust and utilization of your property. The risk vs. reward calculus in this scenario can impact more than just your company’s finances. It can affect your company’s reputation. If your tenants enjoy working with your company and believe that it negotiates rates fairly, those tenants may recommend your services to other potential tenants. If your tenants have concerns that their rental rates are always inflated but that they’re “stuck” with your company because they don’t want to risk losing customers by moving to new locations, they may badmouth your company to other potential tenants. GET HELP WITH YOUR COMMERCIAL REAL ESTATE INVESTMENTS Carefully considering the broader risks vs. rewards of inflating commercial real estate rental rates is consequential business. Researching your options and consulting with professionals may be in your company’s best interests if you’re not sure of which direction to take at any given time.

There’s no question that the commercial real estate market has weathered significant ups and downs over the past several years. Oftentimes, upping the rent on a property seems like the most obvious way to account for challenging marketplace conditions. Yet, inflating commercial property rents is a risk that isn’t always worth taking. Rental rate inflation above the market rate is always a risky business. But it is often a particularly risky proposition when an anchor tenant is either negotiating an initial rate or is looking to renegotiate a rate that has been inflated historically. IT’S ALL ABOUT RISK VS. REWARD Entering into a commercial lease with a tenant involves a measure of trust. On the one hand, you need to be able to keep your business afloat during challenging times. On the other hand, if your tenant believes that you’re inflating their rent to an unreasonable extent, they may understandably feel like you’re taking advantage of their trust and utilization of your property. The risk vs. reward calculus in this scenario can impact more than just your company’s finances. It can affect your company’s reputation. If your tenants enjoy working with your company and believe that it negotiates rates fairly, those tenants may recommend your services to other potential tenants. If your tenants have concerns that their rental rates are always inflated but that they’re “stuck” with your company because they don’t want to risk losing customers by moving to new locations, they may badmouth your company to other potential tenants. GET HELP WITH YOUR COMMERCIAL REAL ESTATE INVESTMENTS Carefully considering the broader risks vs. rewards of inflating commercial real estate rental rates is consequential business. Researching your options and consulting with professionals may be in your company’s best interests if you’re not sure of which direction to take at any given time.

It’s exciting to start your own business – whether it’s something that you’ve been planning for ages or something that happened after a sudden spark of inspiration. However, operating your own business does carry some potential risks. You can end up in a legal dispute with an unhappy customer, fighting over a contract obligation with a supplier or distributor and more. This is why every entrepreneur needs to consider the different types of business insurance they need to mitigate their potential liabilities. What insurance is most important for your small business? Every situation is a little different, so exactly what you need may depend partially on the type of business you’re operating. A home kitchen, for example, may have vastly different insurance needs than a website design consulting firm. Just the same, here are some insurances that may be the most important for everyone: General liability policies: This is the kind of insurance that you need if your customer claims that they fell over the unsecured doormat inside your store or your competitor alleges that you stole their product. Key person insurance: Are you launching your business with a partner or two? What happens to the business if one of you suddenly dies or disappears? You can give potential investors some security through key person insurance. This offers a safety net that can help you stay afloat. Business income insurance: Everything from a natural disaster to social upheaval can cause an interruption in your normal operations. Most small businesses simply cannot afford to be closed for even a few days – let alone weeks or months. This kind of insurance can provide some necessary relief. It’s good to remember that some insurance policies don’t just provide a check – they also provide defense services if you’re facing a lawsuit. That’s an additional value, since it means you don’t have to handle things yourself while still trying to keep up your operations. Like many other start-ups, you’re probably operating on a thin budget – so you want to stretch your dollars the furthest. That means making careful choices about your risk management strategies. Experienced legal guidance can often make it easier to understand where your biggest liabilities lie. It can also help you make sure you negotiate the right insurance coverage.

When signing a lease agreement, you want to know that, as a landlord, you and your tenant won’t have any disputes. However, there’s always a chance that, once a tenant enters into an agreement, a problem can arise. Being prepared for a landlord-tenant dispute may help ensure your new tenant isn’t stepping on your toes. Here’s what you should consider: KNOW YOUR RIGHTS The best way to overcome any issue, or prevent an issue before it starts, is to know your rights as a landlord. Landlords have rights when creating a lease agreement, but tenants have just as many rights. For example, you ask your tenant to pay an application fee, no questions asked. Yet, asking about your tenants criminal history may depend on what county or city you live in. Likewise, landlords are to return a security deposit once their tenant vacates the premises, barring any fees that may be used for damages or cleaning. REVIEW YOUR AGREEMENT TERMS While many landlords use similar lease agreement terms, you should still consider reviewing all of its intricacies to ensure you and your new tenant aren’t breaking the agreement. Your agreement may use basic terminology, which could be used against you. But a complex agreement may make things confusing for everyone. If your tenant is unsure what you expect from them, you should discuss the terms of the agreement. KEEP IT IN WRITING When signing a lease agreement, you should ensure you and your tenant keep a hard copy and additional documents. The advantage to this is that, if your tenant believes you’ve violated the terms, you can review and present the agreement. SEEK LEGAL HELP If a tenant does believe you violated the terms of a lease agreement, then you may need to consider reaching out for legal help, especially if you believe you didn’t.

When signing a lease agreement, you want to know that, as a landlord, you and your tenant won’t have any disputes. However, there’s always a chance that, once a tenant enters into an agreement, a problem can arise. Being prepared for a landlord-tenant dispute may help ensure your new tenant isn’t stepping on your toes. Here’s what you should consider: KNOW YOUR RIGHTS The best way to overcome any issue, or prevent an issue before it starts, is to know your rights as a landlord. Landlords have rights when creating a lease agreement, but tenants have just as many rights. For example, you ask your tenant to pay an application fee, no questions asked. Yet, asking about your tenants criminal history may depend on what county or city you live in. Likewise, landlords are to return a security deposit once their tenant vacates the premises, barring any fees that may be used for damages or cleaning. REVIEW YOUR AGREEMENT TERMS While many landlords use similar lease agreement terms, you should still consider reviewing all of its intricacies to ensure you and your new tenant aren’t breaking the agreement. Your agreement may use basic terminology, which could be used against you. But a complex agreement may make things confusing for everyone. If your tenant is unsure what you expect from them, you should discuss the terms of the agreement. KEEP IT IN WRITING When signing a lease agreement, you should ensure you and your tenant keep a hard copy and additional documents. The advantage to this is that, if your tenant believes you’ve violated the terms, you can review and present the agreement. SEEK LEGAL HELP If a tenant does believe you violated the terms of a lease agreement, then you may need to consider reaching out for legal help, especially if you believe you didn’t.