Target Focus: Commercial Contract Review, Lease Review & Flat-Fee Legal Services
A commercial lease or business contract can create financial obligations that last for years. Business owners often focus on rent, purchase price, or the basic business deal without fully understanding the legal provisions governing what happens when the relationship changes.
A careful legal review before signing can identify provisions that may create significant financial or operational consequences.
Commercial Lease Provisions Deserve Careful Review
Important provisions may include:
- Base rent;
- Rent increases;
- Common-area maintenance charges;
- Taxes and insurance;
- Repair obligations;
- Maintenance responsibilities;
- Personal guarantees;
- Assignment and subleasing;
- Default provisions;
- Renewal options;
- Security deposits; and
- Restoration requirements.
A provision that appears routine can have substantial financial consequences depending on the business.
Personal Guarantees
One of the most important provisions for many small-business owners is a personal guaranty.
A guaranty can potentially expose an individual to liability for obligations incurred by the business. The exact scope depends on the language of the guaranty and applicable law.
Before signing, business owners should understand whether the guaranty is limited, capped, time-limited, or subject to other conditions.
Assignment and Sale of a Business
Business owners should also consider what happens if they later sell the company.
Restrictions on assignment, change of control, or subleasing can affect the ability to sell or restructure a business.
Understanding those provisions before signing may create an opportunity to negotiate more favorable terms.
Why a Flat-Fee Review May Be Useful
For a defined document-review project, a flat-fee arrangement can provide greater predictability concerning the cost of the legal review.
The appropriate fee depends on the document, complexity, length, and scope of services.
A legal review is not a guarantee that a contract will never result in a dispute. Its purpose is to help the client understand legal obligations and identify issues before signing.
Leeran S. Barzilai, A Professional Law Corporation provides legal services for California businesses and individuals, including contract and commercial lease review.
Before signing a significant commercial agreement, contact our office to discuss whether legal review is appropriate for your situation.
Phone: (619) 436-7544
Email: receptionist@lbatlaw.com
Website: https://lbatlaw.com/
