LAW AND CONTRACT Essay Example | Topics and Well Written Essays - 2000 words

LAW AND CONTRACT - Essay Example A partnership business is one which is run by two or more people together. An agreement in writing is required that clearly states the terms and conditions on how to run the business without harming the interest of either of the parties. The sharing of the company profits would be either equal distribution or according to the terms that are given in the written legal agreement. Also the liabilities are also shared in the same manner as the profits. With the Limited Liability Partnerships Act, partners can profit from limited liability and reap tax advantages. The liability protection of the corporation is the major advantage of the owners of a Limited Liability company. A limited liability company is a separate entity which is similar to a corporation. The members cannot be in any way held responsible for any sort of liabilities unless they agree upon by signing a personal guarantee. Companies having a limited liability have varied options for distribution of profits. The profit distribution need not be 50-50 like partnership firms. Flexibility in the distribution of profits is higher for limited liability companies. In the United Kingdom, the Companies House is the one that is responsible for the registration of a company. Prior to the formation of a company as a private limited entity, it is compulsory that the firm registers with the Companies House. A) Merits of Purchasing Freehold or Leasehold Property - Leasehold property purchase is believed to be a smart real estate. Leasehold property means the property is owned by the buyer for a set number of years, as specified in the lease agreement. There is always a chance of earning substantial profit in a leasehold deal. In a long-term lease option, there are three profit centers for the investor. They are option money, monthly cash flow and back end profit. The buyer would pay only the ground rent and will enjoy by owning the property and the land on which the property stands outright. B) Usual repair Covenant for Leasehold property - The terms of a lease agreement are generally treated as covenants even where the agreement is not made by deed. Indeed, a lease of duration less than three years need not even be made in writing, and certain covenants will be held to exist. The basic principle is that when a covenant for repair exists and when the same is breached, the offended party has the right to recover damages for their loss, provided it is an actual loss but not a hypothetical one. The following covenants are required by the landlord for any lease, even a weekly tenancy granted