Get Commercial contracts: A practical guide to deals, contracts, PDF

By Chris Thorpe, John Bailey

This e-book goals to provide an explanation for the rules of agreement legislation for the businessman, and to place these ideas into their advertisement context. somebody interested by advertisement transactions wishes not less than a simple figuring out of the rules of agreement legislation – the felony framework for all advertisement task. a scarcity of this sort of uncomplicated knowing at most sensible leads to a enterprise that is much less aggressive and finally much less ecocnomic than it may be, and at worst may have pricey and occasionally disastrous advertisement outcomes.

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Extra info for Commercial contracts: A practical guide to deals, contracts, agreements and promises

Example text

The distinct legal personality of the company has a number of significant legal consequences. For example, I would not be free to help myself to the money or other assets of the business: that would be theft by me of the property of the company. * For tax purposes also the company is a distinct entity. The company will pay corporation tax on the profit derived from the business: I will have to pay income tax only on the money I receive from the company by way of salary or dividends. So for all legal purposes the company is a separate entity, even if the company itself is wholly owned by me.

With a share sale the business itself and the assets which com­ prise it remain in the ownership of the same legal entity through­ out. Nothing has changed except the ownership of the shares in the company, so the existing contracts which the company has entered into for the purposes of the business are entirely unaffected. With an asset sale on the other hand, ownership of the business and the assets which comprise it has been transferred from one legal entity to another, and the seller will have no further use for the existing contracts which he has entered into for the purposes of the busi­ ness.

4 Rejection and counter offer If the offeree does anything other than simply accept the offer, then he is taken to have rejected it. So the offeree may expressly reject the offer, but he is also taken to have rejected it if he responds with a counter proposal or a qualified or conditional acceptance. 1 we considered the following example of an offer: 'I offer to sell you this painting for £10,000/ Each of the following responses would in fact be a rejection of that offer: 1. T i l give you £9,000/ 2.

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