Key agreements – know your obligations and manage risk

Clients often do not realise how important the key agreements. Time and time again clients cannot even locate their key agreements.

The point about an agreement is this. An agreement creates obligations. Obligations need to be complied with. If obligations are not complied with then severe financial consequences can follow.

It is important to keep a register of your agreements and a table of your obligations. You need to know when those obligations arise and how they need to be complied with.

Key agreements include agreements such as: –

  • the lease of your premises;
  • any operating or  finance leases in relation to equipment and in particular in relation to the fit out of premises
  • Key employee agreements
  • agreements with suppliers
  • agreements with distributors
  • overdraft and Finance agreements with your bank.
  • Licensing and fracnhise agreements

It is fundamental to managing the risk in your business that you obtain some legal advice on your key obligations. If you need assistance in that regard please contact the writer.

Peter Gell

Peter was admitted as a solicitor in 1981 and holds qualifications in law and a Masters degree in taxation conferred by the University of NSW. Peter practises in taxation advisory, estate planning and wills, probate and commercial law.