Incorporating Business in Business Law Classes

Question: Discuss about the Incorporating Business in Business Law Classes. Answer: Introduction Due diligence in most cases is used to refer to an investigation of a business before signing a contract or an act with certain terms and conditions applied. Such agreement are made in the presence of two parties, and in this case it is the solicitor and the shopping center owner, Dentro (Carleton 1997). In this article, Leyla and Emile have opted to assign the solicitor to enter into a pre- agreement pact with Dentro. Such agreement are always destined to either impact negatively or positively. The article further explains the fault that may arise and who should be blamed for the fault. It further expounds on the compensation deal if need be and the legal action to be taken against the lawyer if at all the agreement does not yield. This article also provides the recommendation that Leyla and Emile are advised to take in order to avoid any inconvenience that may. Various business acts will play a significant role in defining terms of agreement and the recommended actions that are to be taken in case the contract that was signed between these two parties are breached. This article further evaluates the relevant bodies and organs such as the NCAT and office of the Small Business Commissioner that need to be contacted to help in maintaining the terms and agreements that were signed in t he contract. Basic Understanding of the Contract and Tort A contract is a set of promises or a promise that the law will enforce between the lessee and the lessor. Elsewhere a tort is defined as a collection of remedies that entitles a person to recover damages that have resulted due to breach of contract and omissions of statements of another person. In this article Emile and Layla have opted to enter into agreement with a solicitor to assist them in acquiring a shopping Centre Muffin Break that lies in the Westfield Shopping Centre Food Court. It is however important for them to establish a relationship with the Franchisor to ensure that a valid agreement is made. According to the government, an agreement should take place between the business partner and the franchisor. A document need also to be established according to the industrial regulation of the franchise codes that are defined in the terms and regulations of Consumer Completion Act. This will aim at solving any problems that may arise and will serve the Business for a longer per iod of time i.e. 2 years as recommended by the government act. This will also enable the business to terminate the franchise if the contract is breached. It will provide information that expresses an interest in buying a franchised business. Who Is Responsible For The Fault? In this scenario claiming the responsibility of the fault need to be analyzed in deeper details to ensure that the outcome is fair and has passed through legal procedure. At first, let us consider such questions as: did the solicitor inform Leyla and Emile that the building they are about to lease is to be demolished after a short period of time? Secondly if at all they received a demolition notification from the solicitor what consideration did they take. Considering the fact that in the lease document there was a clear indication that the building would be demolished within a period of three months, it is clearly the fault of the solicitor for not alerting Emile and Laila that the building would be demolished after three months of operation. However Emile and Laila takes a partial blame for not fully participating in the leasing process. They ought to have read the lease document entirely to ensure that they also had full information regarding terms ad condition of the business the y were just about to lease. However due to Business Enactment Law for acquiring a new property, ignorance does not give even a slight advantage on determining a legal action that need to be taken for breaching a contract (Coffee, Seligman Sale 2007). It is therefore the fault of the solicitor for not alerting Emile and Laila on the full terms and conditions before entering the pre- agreement pact as controlled by Business Enactment Laws. Can They Get Any Compensation? As defined in the Business Enactment Laws and rules regulating acquiring a new property or commodity ignorance does not give even a single advantage or consideration. However because Emile and Laila ordered an authorized lawyer to solicit the entire process of acquiring the Business Centre, it is evident that they can sue the solicitor for compensation. The compensation process will however depend on the valid documentation of the evidence they have. Therefore it is vital for Emile and Layla to have written document that shows that they entered into an agreement that caters for the compensation process in case the contract is breached. Through a court legal act process they are likely to get compensated considering they used a lawyer to acquire the property. Can They Sue The Lawyer? This is a very challenging question that need a lot of consideration. We are not told if Emile and Laila have a valid evidence to support that they officially hired the lawyer. Secondly we are not informed whether or not they passed through the legal process for acquiring the building. But considering that they used a lawyer, it is worth suing the lawyer through court act regarding the process of acquiring an item. (Glazier Miller 2003)The lawyer failed to inform them that the building was to be demolished within a period of three months. Therefore they have a legal authority to sue the lawyer in the court. If the lawyer had notified them of this, then they might have taken a consideration that might have maybe prompted them of initiating another business idea or they could have operated this business but being aware that in a short while it will be demolished. Role Played By NCAT The NCAT is an organ that aims at promoting the consistency in approach in making decisions. In this scene the NCAT will aim at enhancing the accountability that will assist Layla and Emile to oversee the risk of failing to get compensated by ensuring that decision that are made are transparent and are accountable for in the court (Allen, Kraakman Subramanian, 2003). The NCAT will have the jurisdiction to oversee and hear matters that were heard by tribunals. It will assist Emile and Leyla in ensuring that the NCAT hears their matter to ensure that a fair and transparent verdict is made. In case of dissatisfaction with their interests, the NCAT will provide them with an opportunity to appeal against the verdict that is made in the tribunal. They will also impose a civil penalty if need be to the solicitor and hear the proceedings for contempt of court. Their administrative review will provide them an opportunity to ensure that a valid verdict is met. The NCAT will also grant Emile a nd Layla with a legal representation in case they will be granted legal assistance under the Fair Trading Act of 1987 (FreimuÃÅ'ˆller 2012). In this act no monetary limitation of any nature applies currently in NCAT. It will also provide an obligation to bring both these parties to a settlement that both parties will accept. Mediation might apply. Where considered appropriate one or many resolution may be considered to settle these two parties (Bronfenbrenner, 2007). The kinds of resolution processes, and the circumstances in which these processes will apply, will be dealt with as contained in the NCAT regulations. The procedure that will follow will act with little formality as the circumstances in the case permit without regarding legal forms. Role Played By Office of Small Business Commissioner The office of the Small Business Commissioner plays a significant role to ensure that small businesses that are growing or those that have just started are able to thrive well in the competitive and harsh market of today (Picot 2002) In this article, the office of Small Business Commissioner will therefore assist Emile and Laila to develop their business and also protecting them against any exploitation. Below are some of the roles that office of the Small Business Commissioner will play: Representing interests of the Business The office of the small business commissioner acts as an organ that represent the interest of the small businesses. Therefore in this case this organ will act as an organ that will assist Laila and Emile to raise their concern and any assistance to the government through a legal process. They will act as a stepping stone that they will use to sue the lawyer and to ensure that compensation is done and in time. Provision of valid information and assistance The office of the Small Business Commissioner will provide Laila and Emile with the valid information regarding the terms and condition of the operation of their business (Afsharipour, 2007). Before implementing their idea of opening the business they will need to consult this organ to ensure that they follow the right procedure that are defined in the law enactment of the small business organization. This also involves provision of assistance and referral to dispute resolution services. Coordinated approach and consistency The office of Small Business Commissioner will work with the industry and the government to provide a consistent and coordinated approach to this business matter such as the conflict of compensation (Hamann, Sinha, Kapfudzaruwa Schild, 2009). This will ensure that a well-coordinated approach is designed and followed in the right manner according to the Law Enactment Process (Bukarica, Dallas Bukarica 2012). A legal action that is to be taken against the lawyer need to be followed through the right procedure and this is provided in the Office of the Small Business Commissioner Recommendation This article also provide some of the best methods to ensure that Laila and Emile do not get involved in such kind of inconvenience. It is important for them to note that there are offices of the Small Business Commissioner that they need to consult to ensure that all risks and mitigations that may be associated with opening a new business are taken care of (Nimmer Dodd, 2005). There are also various acts and regulations that protect the customer contract violation, an organ that protect their interest against breaching. For instance the diagram below provides the essential findings and some of the recommendations that are a law firm need to consider for a due diligence report. Conclusion It is important to write down the franchise acts to ensure that they act as valid evidence of the agreement made between the lessee and the lessor. In this article there are various acts that are described such as the retail lease act and the franchise act. These acts are meant to define how the agreement between the Emile and Laila, the lessee and the lessor are made. The consequences have been ruled by the rules and regulations of the federal rules of the government. Therefore the articles has clearly captured the agreement made, the implications of the agreement and the legal action that have been taken to curb breaching of the contract between the lessee and the lessor. It is therefore for the good of any new business to comply with the right procedure to ensure that any further and uncertain limitations are avoided. It is also important to note that a lease is a contract and if one breaches the terms of the lease, a legal can be taken against him/her. This may involve paying for the damages and any other legal cost. It is therefore important to maintain the lease made between the lessee and the lessor. References Afsharipour, A. (2007). Incorporating Business in Business Law Classes. UC Davis Bus. LJ, 8, 1 Allen, W. T., Kraakman, R. H., Subramanian, G. (2003). Commentaries and cases on the law of business organization (Vol. 351). 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