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Brush Up On Negotiation Techniques For Lease Restructuring

Orlando Contract Disputes

If the current economic times have hit your business hard, you are not alone. Numerous individuals and businesses have found themselves carefully tracking profits and losses, and you may be among the many feeling the tight grip of financial uncertainty. Though you believe that your business can continue, you know that some changes need to occur.

One change you may have on your mind is restructuring your commercial lease. The amount of rent you pay to utilize your current space could put you in a bind, but you know that you could face penalties for breaking a lease early. However, restructuring could allow you to remain in your current space without completely breaking the lease, but your landlord would have to agree to new terms.

Negotiation is key

Though you feel like you have strong reasons to restructure your lease, your landlord may not immediately see the issue from your side. After all, your landlord wants to make money too. So most likely, your landlord will not simply hear your request and immediately agree to restructure your lease terms. Fortunately, you can try to negotiate to reach favorable outcomes for both of you. Some tips for negotiation include the following:

  • Have a plan for new terms in mind. If you request a restructure without any idea of what the new terms should be, your landlord may not take your request seriously.
  • Consider the likelihood of your landlord consenting to the restructure. In particular, consider the loan your landlord has for the commercial space because a newer loan could mean that a lender has more control over the space than the landlord.
  • Show your landlord that the restructure could benefit both of you by explaining that a rent reduction would allow you to continue occupying the space, preventing your landlord from having a vacancy generating no rental income.
  • Determine whether a restructure will realistically help your situation. If rent reduction or other changes will not help you get out of financial trouble, it may not be worth the effort.

Many people think that because their commercial leases are legally binding documents that they are stuck with the terms they have. Luckily, that is not always the case. With willing parties on both sides, lease restructuring could prove useful to all involved.

Not feeling confident?

If you do not feel confident in your ability to successfully negotiate a lease restructure, you do not have to feel without hope. You could enlist the help of an experienced Florida attorney who could help you approach your situation confidently and assist you with the negotiations process.

By : admin | August 28, 2020 | Lease Structuring

Are You In A Position To Restructure Your Commercial Lease?

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When you first set up shop in your commercial space, you may have felt comfortable with the lease terms. Those terms likely included the length of the lease, the rent you would pay for the space and more. As time has gone on, however, you may have found that the area in which your commercial space resides has proved less than ideal. On the other hand, the market rent in the area may have gone downhill, and you now believe you are paying too much rent for comparable spaces.

Understandably, you may wonder what you can do. After all, paying too much in rent could easily result in losses for your business, and with the current state of affairs around the world and its effect on businesses in Florida and elsewhere, you need to focus on ways to increase your profits. Fortunately, lease restructuring may be an option for you.

What does lease restructuring involve?

As the name suggests, lease restructuring involves making changes, or restructuring, the terms of your commercial lease. Even if you still have time left on your lease, you may not suffer penalties for early termination or term violations if you choose to restructure instead. Of course, restructuring a lease can prove complicated, but meeting the following criteria could help your landlord consider restructuring your lease in a more favorable light:

  • The less amount of time you have left on your lease, the better. If you have two years or less left on your lease term, your landlord may have a more accepting stance toward restructuring, especially in a down market.
  • If market rent conditions in your area have gone significantly downhill, as is likely under the current economic circumstances, you may have a greater chance of negotiating new lease terms.
  • Your company also needs to have relatively good standing when it comes to credit. A landlord does not want to agree to restructure a lease in efforts to keep a space filled, only for a tenant to have to shut its doors soon after due to debt issues.

Of course, numerous other details can go into whether a landlord will be receptive to restructuring a lease. Hopefully, given the difficulties many businesses are facing, you will have some success.

How can you negotiate new terms?

If your landlord does agree to restructure your lease, do not expect him or her to simply agree to just any terms you offer. Some back and forth will likely occur, and you will certainly want to keep your best interests at the forefront. Fortunately, you can work with an experienced Florida attorney who could help you negotiate and draft a restructured commercial lease.

By : admin | August 26, 2020 | Lease Structuring

Breach Of Fiduciary Duty Can Lead To Business Litigation

Putting trust in another person is not always easy. For Florida business owners, trusting outside parties may be necessary when an owner needs certain business-related tasks handled that he or she cannot handle alone. Often, owners enlist the help of financial professionals, trustees, legal professionals and others to help ensure that the business operations run smoothly. If a party violates that trust by breaching his or her fiduciary duty, business litigation could be necessary.

Because putting important business matters in the hands of another party can be a bit disconcerting, most business owners utilize legally binding contracts before entering into a fiduciary relationship. These contracts can help protect the interests of everyone involved and ensure that the parties understand what is expected from the relationship. It can also act as proof for business owners who believe a fiduciary has breached his or her duty.

The downside to a fiduciary breach is that a company could sustain damages that seriously affect operations. Unfortunately, it may be some time before a business owner realizes it has happened. Luckily, owners do not simply have to accept that a trusted person violated that trust. Instead, they can work toward obtaining compensation for those damages.

Business litigation is often a useful means for holding parties accountable for their damages actions. Moving forward with a breach of fiduciary duty lawsuit may be necessary for Florida company owners who have ended up in such a difficult scenario. Fortunately, they can take steps to mitigate the damages done and to receive restitution for the wrongdoing by exercising their legal rights.

By : admin | August 24, 2020 | Business Litigation

FTC Files Lawsuit Claiming Deceptive Business Practices

Orlando Business Litigation Law Firm

When businesses in Florida or elsewhere face accusations of deceptive practices, they are in a serious predicament. In some cases, the Federal Trade Commission could bring a lawsuit against a company if such practices are suspected. When companies have to defend against these allegations, understanding their legal options is necessary.

Yellowstone Capital LLC will certainly want to determine the best options for handling such claims after a lawsuit was recently filed against the company by the FTC. Yellowstone Capital offers merchant cash advances to small businesses that are unable to obtain loans through other means. These advances allow companies to obtain funds immediately, but they must pay back a higher amount. The FTC claims that the company used deceptive trade practices by advertising that personal guarantees and collateral were not needed for the loans, but the small business owners did have to sign a personal guarantee to repay the loans and offer collateral.

In addition to that claim, the FTC also alleges that Yellowstone continued withdrawing funds from companies even after their loans had been repaid. In some cases, thousands of dollars were purportedly taken from consumers’ accounts after full payment had already occurred. There was no comment from Yellowstone regarding the lawsuit provided in the report.

Allegations stemming from the FTC can have lasting repercussions for any business. This type of lawsuit can take a considerable amount of time and effort to defend against, so it is wise for parties facing such claims to gain reliable information about their options. Florida business owners who are facing similar predicaments may want to ensure that they have strong legal counsel to see them through such an ordeal.

By : admin | August 17, 2020 | Business Litigation

Has A Mistake Occurred With Your Construction Contract?

Orlando Business Litigation Law Firm

Making a bid on a new construction project can be an important time for your company. After all, getting projects is how you and your company make money. If you do land the job, you will likely have to agree to certain contract terms, and you will want to set forth some yourself. Unfortunately, the chance exists that mistakes could exist in a contract.

Even if you feel like you have done a thorough job of reviewing the contract, an error could still rear its ugly head later. If this does happen, you could face the risk of losing out on payment or facing other costly issues, or the other party could claim that you breached the contract, which can also cause serious problems.

What kind of mistake could occur?

Though contract mistakes are best avoided, they do happen. In some cases, it means that companies have to go to court in order to have the matter resolved. If so, the type of mistake that has occurred could affect the case, and those types include the following:

  • Mutual mistake: You or the other party could claim that both parties involved made an error, thus rendering the contract invalid. For example, both parties may have signed the agreement believing in the soundness of the construction site, but your company may have later found issues with the site that affected your ability to move forward with the project.
  • Unilateral mistake: This type of mistake occurs when only one party is mistaken about an element of the contract or project. However, grounds may exist to void the contract if the other party knew of the mistake of fact and did not correct the mistaken party.

In some cases, a mistake in a contractual agreement has remedies that can quickly resolve the issue. On the other hand, the situation could become more complex, and it may prove necessary to argue for the voiding of the contract altogether.

What can you do?

If you find yourself involved in a contractual agreement for a construction project and a mutual or unilateral error has occurred, you would be wise to protect your interests. To do so, you may want to contact an experienced Florida attorney who could assess your situation to determine how the error may have occurred and who could hold responsibility. Your legal counsel could also help you determine your best course of action for correcting the problem.

By : admin | August 13, 2020 | Contract Disputes

Contract Disputes Arise Over Lack Of Celebrity Endorsement

Orlando Contract Disputes

Marketing is important for any business. As a result, if a Florida company has a product to sell, it will likely do what it can to ensure that it is marketing to a target audience. Because celebrities often have numerous followers on social media, it is a common marketing practice to pay celebrities to endorse products. Such an arrangement typically involves legal agreements, and if a party does not follow through, contract disputes could arise.

It was recently reported that FabFitFun, a subscription box service that provides beauty products, has filed a lawsuit against JFF Entertainment for breach of contract. Apparently, FabFitFun had come to an agreement with JFF Entertainment in order to have three actresses endorse its service. Ashley Benson, Cara Delevingne and Sarah Hyland were reportedly supposed to receive the product, do unboxings on social media and make subsequent social media posts using specific hashtags to show the products and the subscription service.

The issue arises from the fact that at least two of the actresses were unaware of the arrangement and, as a result, did not endorse the product. FabFitFun reportedly paid $80,000 upfront in order to cover half of the fees associated with obtaining the endorsements. The company alleges that JFF Entertainment breached the contracts involved, but a representative for JFF Entertainment said that the company was unaware of any lawsuit.

The terms of business agreements often act as guidelines for how the transaction should be carried out. When one side does not follow through, the breach could result in considerable losses for the other party. As a result, when contract disputes arise, it is important that Florida companies understand their legal options for mitigating damages and seeking compensation.

By : admin | August 11, 2020 | Contract Disputes

Google Could Face Class Action Litigation Over Unequal Pay

Orlando Real Estate Litigation

When a company in Florida or anywhere else in the country is accused by employees of some type of alleged wrongdoing, the manner in which the issue is handled can depend on the particulars involved. In some cases, company owners or management can hear concerns, discuss the problems and find viable solutions. In other cases, employees may feel that taking legal action is their best course of action, and that could lead to class action litigation if numerous employees feel affected.

It was recently reported that plaintiffs involved in a lawsuit against Google are seeking class action status for their claim. Apparently, four former Google employees brought the lawsuit claiming that female employees were paid less than male workers and that female employees were offered fewer benefits. This lawsuit was filed in 2017, and the request for class action status was filed at the end of July 2020.

According to the claims, women receive approximately $16,800 less in compensation than men while working at Google. One plaintiff stated that she was told that her performance and quality of her initial job interview were lower than male colleagues, which lead to lesser pay, but an evaluation document of her interview purportedly showed that she received a high score during her interview. If the request for class action status is approved, the case could represent approximately 10,800 female employees, and if the case is successful, Google could have to pay over $600 million in damages.

Class action litigation can have far-reaching effects for a company. Even if the company is successful in defending against the allegations, such lawsuits can take away from other important matters. Nonetheless, if Florida companies are facing this type of predicament, owners will certainly want to ensure that they explore their legal options thoroughly.

By : admin | August 4, 2020 | Class Action Litigation