Lease Addendums, Stock Transfer & Promotion Agreements – Part 7

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In our last RealDealDocs blog entry, we discussed shipping agreements, development agreements, and consulting service agreements. This week, we will cover three other types of agreements: promotion agreements, lease addendums, and stock transfer agreements.

To review, an agreement can be defined as “a negotiated and usually legally enforceable understanding between two or more legally competent parties. Although a binding contract can (and often does) result from an agreement, an agreement typically documents the give-and-take of a negotiated settlement and a contract specifies the minimum acceptable standard of performance.”

 

Promotion Agreement

 

A promotion agreement is a document used in the promotion and marketing of a product. A drug company may use this document when hiring a medical supplier to promote a new medication. The agreement will specify the scope of the project, the terms and conditions between the two parties and outline each party’s responsibility in the business relationship. It may also specify how and when payment will be supplied to the promoter for their services.

Promotion agreements may contain fees and interest in the event payment is late. Territory, intellectual property, signage use and other terms may be present in the document. Because the company may have strict advertising standards and practices that the promoter must uphold, these may be present in the contract.

These contracts will contain clauses regarding indemnity, taxes and potential costs. Confidentiality and non-compete clauses may be present in the document, to limit the possibility of a company’s trade secrets and business practices from being leaked to a competitor.

 

Lease Addendum

 

A lease addendum is a section added to an existing lease. The addendum is used to clarify the details contained within the contract and may contain additions to the existing lease. A landlord may hold a contract with a tenant who decided to get a pet. The landlord therefore may add an addendum with details explaining the pet fee and any stipulations regarding the pet allowed on the landlord’s premises.

The addendum serves to specify the terms and conditions of the lease between the two parties. The existing lease still stands and the addendum only defines or adds to the existing lease. Lease addendum may contain language regarding repairs, maintenance, parking permits, pets and other issues that may arise in the landlord-tenant relationship.

If a residence has more than 2 tenants mentioned on a lease, a lease addendum can be used to release a tenant from the lease. The document would also certify that the remaining tenant will fill the rights and obligations of the original lease.

 

Stock Transfer Agreement

 

A stock transfer agreement is used when an individual (”Transferor”) wants to transfer stock shares to another individual (”Transferee”). The agreement certifies the transferor is the legal owner of the company’s stock, and outlines how many shares are to be transferred, plus the price per share.

This type of agreement may also contain information regarding how the transferor acquired their stock shares and the transfer’s terms and conditions. The closing details of the transaction, with dates, times and locations may also be included in the document.

The agreement may also claim a waiver of the company’s rights to refusal, plus representations and warranties. The document may contain the purpose of the share transfer, and may include language about substantial risk for the investment. There may be language regarding receipt of information, taxes and tax advisers, plus attorney consultation. The stock transfer agreement may also include clauses regarding severability, notices and the state’s governing law.

 

Drafting an agreement from scratch can be a time consuming and daunting task – plus, without input from a qualified attorney, you may be poised to enter into an arrangement this not legally sound or in your best interest. Fortunately, RealDealDocs allows you access to thousands of agreements that have already been used in a myriad of different industries. There are numerous types of agreements available on RealDealDocs.com.

 

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