It happens from time to time that even good credit risks have trouble repaying their debts. Serious illness, unemployment, a family emergency-each, when it occurs with a disquieting lack of notice, can wipe out savings and take a toll in other ways, as well. The agreement that goes a long way toward settling this unsettling situation is called a forbearance agreement. In this written contract, a lender agrees to abstain-that is, forbear-from taking action against a borrower that the lender...
The Purpose of Exclusivity Agreements
Exclusivity agreements, because they are present in a number of different areas of the law, come in a variety of forms and are designed to meet a range of goals. The overriding purpose of each exclusivity agreement is, however, to define a relationship in which (generally) two parties agree to deal only with one another, to the exclusion of third parties. The duration of the agreement; whether it is bilateral or unilateral in its rights and restrictions; if it includes only two parties or...
What Is A Real Estate Option Agreement
If you are a sports fan, you have likely heard of option agreements as part of a professional athletes’ contract with his or her current team. The world of real estate has option agreements, as well. They are very common agreements that allow for someone to essentially place a reservation on a piece of property. They have the option of buying it if they want or allowing someone else to swoop in and buy it if they like. Let’s take a look at an average real estate option agreement and see if they...
Security Agreements Getting Down to Brass Tacks
Without a security agreement, it is improbable that individuals or businesses would be able to borrow much money, for interest rates would be prohibitively high. Security agreements allow for the free flow of credit and capital by assuring lenders that they will be repaid on the loans they make.
When a lender makes a loan or extends credit to a borrower, the borrower makes a formal promise to repay this loan or else make the lender whole again by giving some sort of collateral in exchange...
Patent License Agreements
A patent license agreement has become a valuable and trusted technique for companies to share knowledge in a protected way. No company wants to invest time and money in an invention, only to give it away without the prospect of compensation. Thus, the patent license agreement was created. It is an agreement in which a licensor grants to a licensee for consideration the revocable right to perform an act that would otherwise be illegal without the licensor’s permission. Here, in contrast to other...
What is an Engagement Agreement
An engagement agreement is a written agreement in which two parties contract for the provision of goods and/or services. One party provides the good or service, the other party receives and pays for it. Exactly who, what, when, where, and why are all matters left to the parties. Not to sound too nebulous, there are in fact guidelines and even rules. But the engagement agreement is very much a creature of the parties’ design.
One can be excused for believing that an engagement agreement is...
Joint Venture Agreements Key Drafting Issues
The key provisions in any JV include:
(1) Clearly defined business objectives;
(2) The degree of participation and the management roles of each joint venturer in the business;
(3) Contribution of capital and ownership rights to property / division of the profits and losses;
(4) A dispute mechanism to avoid management impasses that may produce deadlock or litigation;
(5) Termination/liquidation of the JV and the buy-out provisions;
(6) Confidentiality; and
What Are Employee Retention Agreements
An Employee Retention Agreement is a legal contract entered into by an employer and a key employee whose services the company desires to retain. When employees know that their company might be acquired, they understand that their employment security may be in danger. In these situations, companies who want to ensure these employees' continuing loyalty and commitment sometimes feel that it is in the best interests of the company and its stockholders to provide the employee with an incentive to...
Motion Picture Distribution Agreements
This article will cover the key provisions of an agreement to distribute filmed entertainment, usually made between a producer or licensor (Producer) of a motion picture and a distributor (Distributor). These agreements are critical to the process of filmmaking; without them, films would not be viewed by the public.
This provision covers the specifications of the film to be delivered by the producer to the distributor. Will it be a color picture or black and white? What type of...
Crash Course on Trademark License Agreements
Properly thought out and managed trademark license arrangements can be win-win opportunities for all parties, including the public. The document that goes a long way toward realizing this opportunity is the trademark license agreement. This agreement is a written contract in which the holder of a trademark (licensor) grants the revocable right to a second party (licensee) to use the holder’s trademark in exchange for royalty fees. Without the license, the licensee could not legally use the...