Armand Aghadjanians’ Post

CANDIDATES: P3 How to draft those clauses... 1. WHO? Always begin with the party/parties e.g. The seller.. OR the undersigned... 2. WHAT? warrants... 3. WHEN? By the effective date.. 4. HOW? Show purchaser the business, give purchaser unaudited financials etc. You can carry on answering the... WHY? WHERE? This will allow you to draft any amount of clauses. PS. You may have to ask these questions a couple of times.

Our sixth Element is now published online: “More is Less- Why Parties May Deliberately Write Incomplete Contracts“ by Maija Halonen-Akatwijuka and Oliver Hart. Why are contracts incomplete? Transaction costs and bounded rationality cannot be a total explanation since states of the world are often describable, foreseeable, and yet are not mentioned in a contract. Asymmetric information theories also have limitations. We offer an explanation based on 'contracts as reference points'. Including a contingency of the form, 'The buyer will require a good in event ', has a benefit and a cost. The benefit is that if occurs there is less to argue about; the cost is that the additional reference point provided by the outcome in can hinder (re)negotiation in states outside. We show that if parties agree about a reasonable division of surplus, an incomplete contract is strictly superior to a contingent contract. If parties have different views about the division of surplus, an incomplete contract can be superior if including a contingency would lead to divergent reference points. https://lnkd.in/dKBVDw46

Quick tip: A contract modification represents a change in the price or scope (or both) of a contract approved by both parties. The modification is treated as a new contract if the scope increases because of the addition of distinct goods or services and the change in contract price represents stand-alone prices.

What does their service cost? What additional fees do they impose? What are their terms of service and other contractual requirements?

Can you pull out after the exchange of contracts? Be aware of these these costs and conditions: #PropertyContract #ContractExchange #CancelContract

📝 Side letters 🤔 Why use them??? 👉 Clarification 👉 Supplementation 👉 Variation ❓ Are side letters binding? 📜 Side letters are contractual agreements that become binding when consideration (payment) is provided. Typically, if a side letter is used to clarify details or illustrate agreed changes to the main agreement, the requirement for consideration is considered to be met, as both parties benefit. ⚖️ without consideration, the side letter is not legally binding, unless it is executed as a deed. #SideLetters #Contracts

3 NEC dates explained: · Contract Date – The date the contract came into existence. · 𝘴𝘵𝘢𝘳𝘵𝘪𝘯𝘨 𝘥𝘢𝘵𝘦 – The date when the 𝘊𝘰𝘯𝘵𝘳𝘢𝘤𝘵𝘰𝘳 assumes the risks stated in the contract (clause 81.1) and insures against them (clause 84.1). This date also starts the payment process (clause 50.1). · 𝘢𝘤𝘤𝘦𝘴𝘴 𝘥𝘢𝘵𝘦(𝘴) – The date the 𝘊𝘭𝘪𝘦𝘯𝘵 provides access to the site or parts of it. It's crucial this date is not missed by the 𝘊𝘭𝘪𝘦𝘯𝘵, or it’s a compensation event – clause 60.1 (2). All dates must be shown on the programme submitted for acceptance.

Differences between Red Clause and Pink Clause LC ### Red Clause LC 😊 - **Purpose**: Allows the beneficiary (seller) to receive an advance before shipping goods. 💰 - **Features**: The advance helps cover costs related to manufacturing or transporting the goods. The amount and conditions for the advance are specified in the LC. 📜 - **Usage**: Useful when the seller needs funding to produce or procure the goods before shipment. 🚚 ### Pink Clause LC 🌸 - **Purpose**: Provides the beneficiary with the right to draw down on the LC after shipment but before presentation of documents. 💸 - **Features**: Similar to the Red Clause LC, but focuses on post-shipment advances. Offers flexibility to the seller who might need funds immediately after shipping. 📈 - **Usage**: Ideal for sellers needing funds post-shipment to cover additional costs or improve cash flow. 🌟 #RedClauseLC #PinkClauseLC #TradeFinance #LettersOfCredit

Don’t be afraid to negotiate the terms of the purchase, including the price, payment structure, and any contingencies. Ensure that the deal reflects the true value of the business. #BusinessBuyingTips #BusinessInvestment #DueDiligence #FinancialReview #BusinessValuation 

If you want an ironclad contract, you should never use templates from the internet or merge several contracts into one. Why not make use of our Contract Check at a fixed price to have your contract or contract template examined thoroughly? We rate the submitted agreement according to a simple traffic light system. Afterwards, it is up to you whether or not you would like further consultation and support. Get started at https://lnkd.in/eK3yDSUu #ContractLaw #ContractCheck #GermanContractLaw