Streamline Commercial Lending With a Business Lawyer

With the services of a business lawyer, you create a way to navigate through the maze of commercial lending procedures. Filling out the stacks of forms for a personal loan are difficult but this task is magnified when you are seeking to obtain commercial lending for a business venture. Some brave souls try to sidestep legal advisers and end up with more problems than they bargained for.

There are business lawyers who have extensive training and preparation in handling commercial lending applications and contracts. They are not just making sure that they legal documents are in order; they are safeguarding the interests of their clients. Without this additional expert advice and guidance, you may end up paying excessive rates due to clauses that were not adequately understood.

Commercial lenders and business lawyers all speak the same language when it comes to terms and contracts. You can rely upon your personal attorney answering your questions and explaining all of the documents, costs, and fees relative to asking for a loan in the Northeast, in language that you can understand. This is just one of the ways that business and tax lawyers can help you simplify business loans and commercial ventures.

When you are looking for a way to streamline the procedures involved with commercial lending a business lawyer is always your best option. Even before you get to the contract stage your attorney will go over facts and figures to make sure that you are getting the best deal. You may be more interested in just getting the loan approval but business lawyers want your best interests protected from application to closing.

The attorney has a complicated role when business transactions are involved. It is necessary for your business lawyer to triple check every word of each legal document you sign. It is also his responsibility to make sure that any changes are agreed to and recorded appropriately.

All commercial lending procedures are far more complex than personal loans. The terms and conditions may not get fully explained without a business lawyer being present. Most business owners and entrepreneurs immediately realize how valuable these legal services are.

There have been instances when people did not seek out the assistance of an attorney to help them with loans. The problems quickly surfaced when balloon payments, variable rates of interest and other little understood terms came into play. As any business lawyer will tell you, “Ignorance is no excuse.”

Having a business lawyer on your side at the beginning of any commercial lending venture means you will be fully apprised of the situation. Your attorney will look at all of the points presented in your proposal and the loan offer. If you can get better rates or terms this is the professional who can arrange these factors for you.

Even experienced businessmen have been exposed to less than honest lending practices. It is always in your best interest to have a business lawyer guiding your financial transactions. If something seems the least bit unorthodox, he will be the first to move to stop the proceedings on the spot.

You cannot be too careful in the volatile business and financial world we now live in. Having the experienced eyes and ears of a business lawyer gives you the edge when it comes to any type of legal transaction. If commercial lending is new to you, these services are crucial to protect your financial future and security.

Using Lawyers Effectively: 5 Good Legal Habits of Successful Businesses

Do you see your lawyer as a key member of your strategic business team?

Do you feel that you can sound them out about commercial and strategic issues, without fear of the cost?

Or, is your lawyer the last person that you call when a problem has got so bad that there is no alternative?

Successful businesses are well supported by specialists in all the management disciplines, such as production, operations, strategy, HR and finance as each specialist has expertise in generating growth or reducing risk.

Sadly, legal advice is not always taken in advance of strategic decisions in the same way that most businesses would consult with their accountant or HR manager. Consequently, problems can arise down the line, for example when a contract does not protect you in the way that you envisaged.

Successful businesses make the most of their legal adviser and typically display the following 5 good habits:

1. Choose a legal adviser that understands your business

When selecting a new legal adviser, consider how interested they are in the businesses and whether they understand the issues that your business faces. For example, a bio-tech business will need to ensure that their adviser is familiar with regulatory and intellectual property law relating to their sector.

Do they ask about your personal and business objectives? This is particularly important if you are thinking of an exit strategy in the future.

2. Include your lawyer as part of your strategic business team

Whilst lawyers can advise you on your regulatory obligations and compliance, a good commercial lawyer will advise you on the commercial implications of strategic decisions. Keep your lawyer in the loop. Keep them apprised of your business strategies so they can identify legal risks at an early stage of your strategy and give you proactive solutions.

A lawyer who understands your business can provide you with innovative business structures that help your business grow and protect your market position, as well as identifying risks.

3. Provide a clear brief and feedback

Provide clear instructions, agree budgets and provide any information promptly. Consistent communications are vital especially where there are critical deadlines. Provide feedback to your lawyer, especially if you feel that you are not getting the level of service that you require.

4. Invest in proper legal documentation processes

A successful business will have efficient systems for purchasing, quality control, accounts, and HR. Yet few businesses have efficient legal systems and this often causes problems as a deadline for contract renewal can be missed or it can cause unnecessary delays when preparing a business for sale. Without proper documentation, evidence can be difficult to find when disputes arise and oral evidence is only allowed in limited circumstances so the written word remains paramount.

5. Budget for legal advice

Budgeting for legal advice is no different than budgeting for accounting or HR costs. You may also be able to insure against certain legal costs.

The Technique to Choose Appropriate Commercial Litigation Lawyers for Your Company

Ever required some sort of commercial litigation lawyers for settling some related matters of your company?

If you own a company or an organization then there certain circumstances which may lead you to seek some legal advice from commercial litigation solicitors in regard to certain issues concerning your business venture. But before approaching that perfect lawyer for your organization, how will become ensure for the fact that the one you are going to hire will be the best one for your company?
Yes, it is a bit of tough task because there a number of lawyers available but not all are specialized in handling cases concerning commercial litigation. So you are required to devote some of your quality time in finding and sorting out the best lawyers available in the town those who have a good level of experience in handling and solving cases involving commercial litigation. While going to search for the lawyers who can best serve your purpose, you need to identify those law firms that provide help and support to specialized matters related to your category and filed of business. You can seek the help of other industry experts or may even approach the online method of searching through the internet.

After you find some quality commercial solicitors related to your field of business, you need to have personal sessions with each of them in regard to the experience they possess in handling such sort of cases. What are their success rates? What approximately time frame will be required to solve and sort out the matter? What are the monetary matters that will be involved during the on-going process of the case? What are the organizations for which they have previously worked for? What is the lawyer’s field of expertise?

You need to get clear cut answers to each of the above asked questions while having personal sessions with the solicitors. You need to know the fact that it is you who is appointing the commercial litigation lawyers for the some cases related to your business organization and so you have every right to verify the quality of the lawyer before ensuring and finalizing his/her contract with the company. Another important thing that the lawyer needs to provide for before proceeding with the case is a brief outline or a blueprint about the basic ways they will take for in order to handle the case.

Always remember that the lawyer who will honestly work for your welfare of the organization will not only handle the case with utmost sincerity and support but also will guide and advice you on the various legal steps and approaches that will be coming in the way while the legal process continues.

Commercial Law – Contract Construction – ‘Reasonable’ & ‘Best’ Endeavours

The recent case of Rhodia International Holdings Limited and Rhodia UK Limited v Huntsman International LLC [2007], provides new guidance on a long-disputed area of contract law. According to the judgment of the High Court, a duty to exercise ‘reasonable endeavours’ requires less than ‘best endeavours’ but can still demand a party to act against its own commercial interests, although the case does not resolve all the uncertainty surrounding the difference between ‘reasonable’ and ‘best’ endeavours.

The case confirms that ‘reasonable endeavours’ is a less stringent obligation than ‘best endeavours’ – a concept which is commonly assumed. The case also confirms that a ‘reasonable endeavours’ obligation may be discharged by exhausting just one of a number of possible solutions, whereas a ‘best endeavours’ obligation requires all avenues to be explored.

Huntsman International LLC (“Huntsman”) had agreed to buy Rhodia International Holdings Limited and Rhodia UK Limited (“Rhodia”), a chemicals company. As part of the sale and purchase agreement both parties were to use reasonable endeavours to ensure that all supplier contracts passed from Rhodia to Huntsman, including one with a power company called Cogen.

However, Cogen refused to accept the transfer of the contract without a guarantee from Huntsman’s parent company. The argument over what was meant by reasonable endeavours focussed on Huntsman’s refusal to provide that guarantee. That refusal therefore affected the transfer of the contract with Cogen for the supply of power.

Huntsman paid for the power from the date of its purchase of Rhodia in 2001 until 2004. However, in 2004 Huntsman told Rhodia that it was pulling out of the location and that responsibility for the power contract remained with Rhodia until the contract expired in 2009. Huntsman submitted the reason for this being that the contract for the supply of power had not been transferred. Cogen claimed that £14.8m worth of power and services was owed, and the case concerned Huntsman and Rhodia arguing over who owed Cogen that amount.

The case was eventually decided on what constituted ‘reasonable endeavours’ to ensure the contract transferred from one company to the other. It was ruled that Huntsman International had breached the sale agreement by not using its reasonable endeavours to provide a guarantee for a power contract. Julian Flaux QC, sitting as a deputy High Court Judge in the case said:

“An obligation to use reasonable endeavours to achieve the aim probably only requires a party to take one reasonable course, not all of them, whereas an obligation to use best endeavours probably requires a party to take all the reasonable courses he can. In that context, it may well be that an obligation to use all reasonable endeavours equates with using best endeavours…”

The ruling in the case made it clear that the terms of the sale contract were binding, even if its terms no longer suited one of the parties. The companies must abide by their contractual obligation to make a reasonable endeavour even if it is against their company interests.

However, there are other authorities which suggest a slightly different viewpoint. In the absence of a specific course of action assumed by a party in the context of a reasonable or best endeavours obligation, neither obligation is likely to require a party to sacrifice it own commercial interests. It appears from the other authorities – which were not discussed in this case – that ‘reasonable endeavours’ may not even require the party giving such an obligation to act to its own disadvantage. This would suggest that relatively little effort is required to comply with a ‘reasonable endeavours’ obligation.

As far as the drafting of contracts is concerned, the best way to achieve certainty would be to specify the actions a party must take in using its ‘best’ or ‘reasonable’ endeavours wherever possible. The relevant party will then be bound to take those actions in any event and the question of whether those actions are contrary to that party’s commercial interests will not arise.

© RT COOPERS, 2007. This Briefing Note does not provide a comprehensive or complete statement of the law relating to the issues discussed nor does it constitute legal advice. It is intended only to highlight general issues. Specialist legal advice should always be sought in relation to particular circumstances.

Tips Before Hiring Commercial Solicitors for Your Organization

Commercial solicitors are those types of lawyers who are specialized in handling cases that are related to corporate organizations and offices. These lawyers can be come from both civil field as well criminal field of law. These lawyers are appointed for handling cases of both criminal as well civil offenses that occurs or takes place within the boundaries of organizations and companies. There are several big organizations those who appoint commercial litigation lawyers as their employees on a continuous basis. The major advantage of keeping lawyers as salaried professional in a company helps in getting a legal person always available in hand while handling of all the legal issues that are faced by the company.

But before appointing some commercial lawyer for your company, you need to verify and have detailed interview sessions with the candidate in order to check whether the particular person will be ideal to handle the legal issues of your company with minimal of confusions. While undergoing the interview sessions, some of the questions that you need to ask the candidate are:

First and foremost question will be how many years of work experience does the candidate possess on the similar sort field. Then you need to grab information about the previous organizations the person was associated to. The types of cases, which were handed by the candidate while working at the previous organization, also need to be given a brief explanation of. The time period that is approximately required to sort out the cases is also important to discuss about. Monetary matters regarding the handling of cases are also important to discuss while the interview sessions goes on. Finally you need to ask about the matters which can be easily handled by the interviewer. Let us see some of these matters:

  • Legal procedures involved during office incorporation.
  • Proper and appropriate drafting of official documents, which are of legal importance.
  • Taking care of the internal official agreements and assignments that do require legal assistance.
  • Legal procedures that are involved while commercial properties are bought, sold, leased or given for rental purpose.
  • To sort out matters that involves employee arguments and problems.
  • To provide legal protections of property rights that is of intellectual stature.
  • To settle problems generating from income tax oriented matters.
  • To provide support in regarding to buying and selling of official shares.
  • To fix and settle for matters those are associated with litigation issues.
  • To settle and fix on negotiation issues.

Although there are several offices that hires for fresher law candidates as their commercial solicitors, but it is better to hire for experienced ones in your offices because they have more knowledge and are much more experienced in handling different sort of official cases with maximum efficiency.