Formalizing Business Agreement

Summary

A Heads of Agreement is a non-binding document outlining key terms before a formal contract. To formalize it, consider downsizing or subleasing a warehouse, selling business assets, and repaying a directors loan. Ensure the lease allows subleasing, negotiate with sublessees, and notify the landlord. Clearly outline the loan repayment schedule, default clauses, and remedies. Draft a legally binding agreement detailing repayment terms and default consequences. Consulting a legal professional is recommended to ensure enforceability.

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*. The business continues to operate in an administrative capacity
Could you clarify what specific aspect of the business continuing to operate in an administrative capacity you need assistance with? Are you concerned about how this affects the terms of the Heads of Agreement or something else?
Heads of agreement The business continues to operate in an administrative capacity. We need to downsize or sublease the warehouse to reduce our running cost The assets owned by the business are sold and proceeds of sale are paid to Tony Nolevski director * as an initial instalment by way of repayment of tony nolevski directors loan The balance of the amount owed to Tony nolevski be paid in instalments on a monthly basis in the sum of $X until such time when the loan is repaid in full; and The terms of the agreement be reduced into writing such that default on payments without adequate rectification and resolution as stipulated by the agreement, will result in the outstanding amount becoming a debt enforceable at all.
It sounds like you're looking to formalize the Heads of Agreement with specific terms regarding the sale of assets, repayment of a director's loan, and the potential downsizing or subleasing of a warehouse.
Here are some key points to consider:
- Downsizing or Subleasing Warehouse:
- Ensure the lease agreement allows subleasing.
- Negotiate terms with potential sublessees.
- Notify the landlord and obtain consent if required.
- Repayment of Director’s Loan:
- Clearly outline repayment schedule and amount.
- Include clauses for default and remedies.
- Ensure the agreement specifies the loan amount and interest, if any.
- Formulating the Agreement:
- Detail the repayment terms and consequences of default.
- Make sure it’s legally binding and enforceable.
Would you like help drafting these specific clauses?
yes
Case Rating: *
It's essential to draft a clear and legally enforceable agreement. I recommend you consult with a legal professional to ensure all terms are correctly outlined and enforceable.
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