In our recent RealDealDocs blog entry, we discussed strategic alliance agreements, extension agreements and release agreements. This week, we will cover three other types of agreements: lease termination agreements, restaurant lease agreements, and manufacturing 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.”
Lease Termination Agreement
A lease termination agreement is essential to prevent any disputes when a tenant is leaving. The agreement not only protects the tenant from any future liability toward the home, but it also helps protect the homeowner in case the former tenant takes him to court. The lease termination agreement is drafted much like a lease agreement that is signed when a new tenant moves in, except that this focuses on the termination and release of liability. Release of liability means that both parties have agreed not to sue each other for any fees owed. The agreement will also address any property that should be given back to the homeowner at the end of the lease, such as lawn equipment, window air conditioners or appliances. While this seems obvious, it is always best to have it in writing. There is also a section called “Yield Up”. This is the tenant’s promise to be off the premises by the end of the termination date, as well as the condition the tenant is to leave the property. The conditions should be listed in the lease agreement that was previously signed when the tenant moved in.
Restaurant Lease Agreement
A restaurant lease agreement is a contract between the real estate owner and the restaurant owner that constitutes various elements of the lease. This contract should be thorough as to the various elements of the rent, utility fees, construction, repairs, insurance and other instances that might arise during the building lease. Many lease agreements include the building but not the land without a structure. However, it is a good idea to have construction-based elements listed in the lease agreement, in case something happens. For instance, is a crack occurs in the basement of the building, both parties would need to know who is responsible. Having this already stated in the restaurant lease agreement keeps costs low for both parties, and helps alleviate the problem quickly. This can also occur if the air conditioner stops working. Having it already listed in the lease agreement can lead to a quicker, and cheaper, resolution. Be sure to list who is responsible for utilities such as gas, electricity and water in the lease agreement. What seems to be common sense to you, might not be to another. It’s better to have a massive lease agreement with everything covered, than to end up in court later on because of the fear of scaring off a tenant with a large contract.
A manufacturing agreement is a contract between a company and a manufacturer who has been hired to complete a service for the company. These services may include tailoring, construction, printing or various other activities. A manufacturing agreement should list, among other things, the prices and quantities of the product, delivery schedules, confidential information about the product and company policies.
It is always a good idea to have prices in writing, especially when you are dealing with a manufacturer who at times can deal with hundreds, or even thousands, of companies daily. The pricing saves you from being surprised by a higher price. If you were to be charged a higher price from the manufacturer, you would have to charge a higher price to the customers. It is always wise to have quantities posted, as well, so you do not have unreliable production. A delivery schedule should be listed in the agreement, as well, so you know when to expect your new product. If your product has some sort of secret ingredient, it is always a good idea to have a disclaimer in your contract, prohibiting the manufacturer from disclosing to the public the secret. Company policies should also be included in the manufacturing agreement; said policies may range from no artificial coloring to no animal testing.
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.