DO we need a stock broker for a simple Shares transfer?

When it comes to legal transfer of shares in an Australian company listed on the stock market, you will need a stock broker. Brokers provide a variety of services to their clients. Primarily, they facilitate securities trading i.e., the buying and selling of shares. If you want to buy or sell shares you need to do so via a broker.

Broker is not required if you are Issuer Sponsored and wish to transfer your unlisted securities - i.e. securities not listed on the Australia Stock Exchange. When it comes to transferring share within a corporation a basic share transfer form helps the cause. This document creates a transfer, sale or purchase of shares in a private Australian company. The stock transfer form is one of the basic documents used following incorporation of a company. It is used to record the transfer of stock from one shareholder to another. Interestingly Off-market transfers are usually private arrangements between family members or transfers from deceased estates.  Depending on the reason for transferring stock, there may be different documents required to initiate the transfer. While the transfer of shares is not difficult, many people have questions about what they should do. But solution to this problem is very simple as we need a share transfer form, a letter of instruction and original stock certificate to ensure smooth transfer of share.

Consideration’s for the transfer form
As this document is maintained in personal capacity so a precise transfer document provides you with freedom to act according to need. Furthermore, you should check whether there are any restrictions on the transfer of shares in the Company's Articles of Association. Share transfer dealing is rather tricky affair and specialist advice from able legal aid is always appreciated. To complete the stock transfer form you will be asked to provide the following information:

•Complete an Off-market Transfer Form and a formal document.
•Have stamp duty assessed and paid on the transfer (in the state of incorporation.
•Lodge stamped document.
•Consideration money (How much is being paid for the shares).
•Name of Security (e.g. 100 Ordinary Shares for XYZ LIMITED).
•Description of Security.
•Number of shares transferred.
•Name and address of transferor.
•Name and address of transferee.
•Authorizing signature from both parties.

Important to note is that under the Anti-Money Laundering and Counter Terrorism Financing Act 2006, some security issuers must take steps to identify new investors.

How to Transfer Shares within a Corporation

When it comes to transferring share within a corporation a basic share transfer form helps the cause. This document creates a transfer, sale or purchase of shares in a private Australian company. The stock transfer form is one of the basic documents used following incorporation of a company. It is used to record the transfer of stock from one shareholder to another. Interestingly Off-market transfers are usually private arrangements between family members or transfers from deceased estates.  Depending on the reason for transferring stock, there may be different documents required to initiate the transfer. While the transfer of shares is not difficult, many people have questions about what they should do. But solution this problem is very simple as we need a share transfer form, a letter of instruction and original stock certificate to ensure smooth transfer of share.

 Important thing to note here is that this arrangement of transfer of share is suitable for anyone wishing to record the details of a share transfer with the company secretary of other registrar of the shares of a company. To affect the legal transfer of shares in an Australian company listed on the stock market, you will need a stock broker.

Consideration’s for the transfer form
As this document is maintained in personal capacity so a precise share transfer forms provide you with freedom to act according to need. Furthermore, you should check whether there are any restrictions on the transfer of shares in the Company's Articles of Association. Share transfer dealing is rather tricky affair and specialist advice from able legal aid is always appreciated. To complete the stock transfer form you will be asked to provide the following information:
• Consideration money (How much is being paid for the shares).
• Name of Security (e.g. 100 Ordinary Shares for XYZ LIMITED).
• Description of Security.
• Number of shares transferred.
• Name and address of transferor.
• Name and address of transferee.
• Authorizing signature from both parties.

Website Privacy Policy: Do I Really Need One?

Privacy policy
It is a statement or a legal document that discloses some or all of the ways a party gathers, uses, discloses and manages a customer or client's data.

Not limited
 Personal information can be anything that can be used to identify an individual, not limited to but including; name, address, date of birth, marital status, contact information, ID issue and expiry date, financial records, credit information, medical history, where you travel, and intentions to acquire goods and services.

 In the case of a business it is often a statement that declares a party’s policy on how it collects, stores, and releases personal information it collects. It informs the client what specific information is collected, and whether it is kept confidential, shared with partners, or sold to other firms or enterprises.

Importance
Privacy policy is important to the modern state, because grounded in it is the individual's physical and moral autonomy. For this reason, it is worthy of constitutional protection.

A website privacy policy template tells your visitors and customers how you deal with their information. If you run an ecommerce website where goods or services are sold then it is a legal requirement under the ecommerce Regulations that you have a privacy policy on your site.

Benefit
The presence of the policy demonstrates to visitors that you have given consideration to their privacy. This in turn will enhance your reputation as a trusted site that thinks about the visitors that go to the site.

Australian law
The Privacy Act 1988 is an Australian law dealing with privacy. Section 14 of the Act stipulates a number of privacy rights known as the Information Privacy Principles. These principles apply to Australian Government and Australian Capital Territory agencies or private sector organisations contracted to these governments, as well as to organisations and small businesses who provide a health service.

Australians have a right to know why such information about them is being acquired, and who will see the information. Those in charge of storing the information have obligations to ensure such information is neither lost nor exploited. An Australian will also have the right to access the information unless this is specifically prohibited by law.

Information to include in a Cookie Specific Privacy Policy:
• What cookies are
• What info is collected
• What is done with the information
• How to reject / delete / accept cookies
• Explain there are no harmful technical consequences/risks

Why need to develop a privacy policy
1. Create a better electronic environment on the internet
2. Laws / legislation may pertain to  business

By letting people know what info is collected and what is done with that information, you can create a transparent environment in which people / consumers are more confident. You can eliminate stress and concerns about abuse of personal info.

Disclose owner’s intent
One of the main reasons a website needs a website privacy policy page is to disclose the owner's intent. People have a right to know what information is being traced behind the scenes, and what the owner plans to do with that private information. For example, does the site owner collect IP addresses to establish a database of user habits to sell to other organizations? Does the site owner request addresses with the express purpose of selling the list, or are the email address provided for a legitimate purpose, such as sending existing customers relevant information about product issues and upgrades?

Designing privacy policy
Tell visitors why tracking cookies are good, why the information is beneficial, that it is used to improve websites and their content. If you are collecting information, tell them what you do with that information. Give people an opportunity not to have their info collected, for example by blocking cookies. Explain how people can block cookies. Also explain that cookies are not harmful and cannot introduce viruses or extract personal contact information.

Legal tips regarding writing terms and conditions of website

Terms and conditions
 Terms and conditions are also known as the terms of contract between seller and customer that keeps both bound to some agreement.

Importance
 These agreements are very important to protect seller’s rights, limit liabilities and they also provide security to both the buyer and the seller.

Legal tips regarding terms and conditions

Data protection
Data protection is a serious menace and one must clearly point out in privacy policy about the customer data that sellers are handling, including contact details, credit card numbers, bank accounts and purchase history. Reassure people, that their data is safe with you and that their information will not be passed on to other companies. In website terms and conditions page, you should also clarify about when and why you might contact customers as pursuing people without their consent is illegal in most countries and must refrain from any such acts.

Partial responsibility
While supplying goods clearly mention that you would only be partially held responsible for the delivery time or conditions of goods and that you are following all laws and regulations of your country. International shipping and customs should also be followed and clearly point out the rights and liabilities of the consumer
Statements in clear and organized manner.

Write the statements in clear and organized manner so that it does not create any sort of confusion for you or your client. While writing the conditions, chalk out a detailed plan of merchant policy. You can start by writing down the terms in which you want to treat your customers, the way you would want to deal with enquiries and complaints and the data protection rules that applies to you and the customers.

Legal tips actually escalate the website and its business and provide legal security and benefits

1. Make Terms and Conditions Statements Simple and Comprehensible
The most common reason why most of the people skip website terms & conditions section due to its complexity. Complexity translates into lack of understanding. Avoid the overuse of legal jargon and use only what is absolutely necessary. Do;
• Make the writing style simple but accurate
• Engage customers and clients
• Focus on clarity

As to what goes into the Ecommerce terms and conditions depends upon the genre of website and business. The needs of a blog are different from the needs of a commercial website and while the difference demands different data and terms, there are a few terms/statements which are common and ubiquitous. Such statements include:

• Terms of Service for the website users
• A clause of Local Law applicable in case of disputes
• Limitation of Liability and Disclaimer
• Intellectual Property Arrangements
• Conduct of members and visitors
2. Add Data Protection and Privacy Policy

One of the biggest challenges to any website is the complete legal protection of its data. It is, therefore, imperative to include a clearly stipulated Website Privacy Policy ensuring the safe handling and protection of customer data i.e. credit card number, contact details, purchase history and bank account etc. Ensuring people about the safety of their confidential information is seller’s responsibility. Therefore, the Terms and Conditions page should clearly indicate when and why you will personally contact people as pursuing people is illegal in some of the countries.

3. State Company’s Legal Standing on Shipping and Goods Delivery
Another tip that is important for commercial websites is to clearly mention your company’s policies on delivery time, international shipping, customs policies and condition of goods. That your company follows the laws, rules and regulations of your country and will be held only partially responsible for all these services should be clearly stated.

Key issues which need to be taken into account in a website compliance audit.

 Place appropriate terms and conditions of use
Whether your website is one-way information only allows user-generated content or sells goods or services online, you'll need some small print. This will cover core issues such as liability, content control, law and jurisdiction.
To have a binding contract, your conditions need to be accepted by the user. This must be balanced against the need for a good user experience.

Collect any personal data via your site and what is it used for?
Personal information can be collected about individuals for all manner of purposes. Typically this may include online registration procedures, collecting contact details to deal with information requests and accepting online job applications to name but a few. Make sure that you comply with the requirements of data protection law.

Using data for email or mobile marketing
Collecting personal information via a website often goes hand in hand with electronic marketing. Care needs to be taken to comply with the laws on direct marketing when using email as a method of marketing your goods and services.

Tracking devices
Ensure that your website includes a clear statement on the use of cookies and other tracking devices. Incorporate a basic explanation of how such devices work and how the data collected will be used. The law governing this area also states that users should be given an opportunity to refuse such devices.

Intellectual Property adequately protected
Make sure any intellectual property rights are protected as appropriate, for example by incorporating a copyright notice and putting express restrictions on copying logos. Make use of registered trade mark symbols where authorised to do so and make sure that you have obtained all appropriate licences and consents for the use of third party material.

Provide sufficient information about your organisation and its products and services?
It is a legislative requirement that key information about your organisation and its products and services is provided. There is a whole host of information which should be included on your website for example, VAT details and information on pricing and delivery costs to name but a few. for a list of the minimum information which needs to be published on your website.

Online trading terms cover all key points
Ensure that your website incorporates online trading terms which would go beyond simply terms and conditions of use of your site.

These should cover key issues such as contract formation and liability.

Dealing with consumers online
Be particularly careful when dealing with consumers and make sure that your website complies with the raft of consumer legislation which affects this area.

Australian consumer law
The ACL is a single, national law covering consumer protection and fair trading which applies in the same way nationally and in each State and Territory.

For the first time, Australian consumers have the same protections and expectations about business conduct wherever they are in Australia.

Contents
• Legal tips
• Comprehensive
• Simple
• Online trading
• Disclaimer

What is a shareholder’s agreement what provisions it contains?

Shareholder’s Agreement
It is intended to make sure that shareholders are treated fairly and that their rights are protected.


It is usually defined as an agreement in which the right of the shareholders against the company is defined and how they will go to operate the company is also narrated.

Diversified
These agreements are much diversified they even highlight the rights in context of the other stakeholders like employees, vendors, government and the other shareholders like them. The scenarios under which these are made are quite diversified.

Why agreement?
There are multiple reasons that why an organization should go for it but the two most important ones are:
• To clarify the domain and interests of the major and minor so in future no dispute between majority and minority will arise. If the agreement is not made the majority will take many decisions that are not in interest of minority.

• The second important reason for drawing a shareholder agreement is to clarify the process of decision making. Different people with different designations have diversified stake within an organization. It is very important that power in single shareholder should not be vested rather all should be given some power to deicide remaining within their domain. This will increase the trust of shareholders within the company and it will be a win win situation for both.

Provisions
Provisions that are included are:
• That how the shareholders are able to protect their rights if they are not available in the meeting,
• How they are able to shift their rights to other soul if they are no more interested in being a shareholder and many provisions like that.
• dividends payment;
• limitations on the transfer of existing shares;
• options to acquire each other’s shares in certain circumstances;
• what is to happen on the retirement, death or incapacity of a shareholder;
• voting procedure;
• non competing with the business of the company

The Australian Corporations Act,
The Australian Corporations Act, under section 134, requires all proprietary companies be provided a constitution upon incorporation.  The constitution sets out the company’s objectives, as well as the scope of the company’s activities and certain internal administrative matters. It’s easy to assume, then, that a constitution will enshrine the rights and obligations of shareholders.

Advantages
• It defines the rights and duties in great detail.
• It also provides the solution to avoid deadlock that may arise on the death.
Features of the shareholder agreement
• Obligations of the company to the shareholders agreement;
• how shareholders will maintain their rights if they are not present at meetings;
• roles of directors and actions by the company or a director which require shareholders’ consent: controls and redistributes power between shareholders so that majority cannot force decisions;
• new shareholder rights and restrictions: even if he is a trustee in bankruptcy;
• how to deal with new intellectual property;
• transfers of shares and rights of pre-emption: when allowed, under what conditions and to whom;
• exit strategy: the hidden bomb if neglected;
• key man insurance;
• publicity about the deal;
• confidentiality;

It regulates the following matters:

Regulating the ownership and voting rights of the shares in the company, including
• Lock-down provisions
• restrictions on transferring shares, or granting security interests over shares
• pre-emption rights and rights of first refusal in relation to any shares issued by the company
• minority protection provisions

Control and management of the company, which may include
• power for certain shareholders to designate individual for election to the board of directors
• imposing super-majority voting requirements for "reserved matters" which are of key importance to the parties
• imposing requirements to provide shareholders with accounts or other information that they might not otherwise be entitled to by law

Resolution of any future disputes
• deadlock provisions
• dispute resolution provisions

Contents
• Rights and obligations of the parties
• Restriction on transferring share
• Obligation of the company
• Minority protection
• Account information

Reason to buy from Net Lawman
Net Lawman provides you a comprehensive range of shareholder agreement template which save your time and can be amended accordingly as and when required.

Are you selling your business?

There comes a time in every person’s life that he feels like quitting the thing he builds on his own. Yes that’s right his own business. Now first thing that comes into mind is how anyone would do that. I mean you spent countless sleepless nights just to make sure your business becomes successful and turn into a money churning success. But in doing so often your family and social life is neglected and by the time you realize it; a lot needs to be desired then. Sometimes it seems as though the only socially acceptable way to exit a privately held business is to hang on until you're well past your prime, eventually giving the reins to your offspring so you can play golf for a few years before retiring into a home to wait to die.

But apart from that there can be countless other reasons you want to quit your business. There might be cases you get bored of you venture, or you are not medically fit to resume your duties or you are tired of your current partners and surroundings and need a change. But ironically in business circles selling a business is not taken with good spirit. There is always a suspicion in the minds of the sellers about the reliability of the business for sale. The potential acquirer wants to find out if you have a predictable, economical and scalable formula for finding new customers. They would like to understand the depth of your team and determine specifically which members need to be motivated and retained post-purchase. Similarly the acquirers would like to evaluate whether the buying your company would relate to their company goals.

So while selling there needs to be a detailed explanation of every part of the business. So all parties are sure of what they are selling, what they are buying, and what they can or cannot do. A buyer must be able to state how they will pay for the business, a seller must state what they are selling, and everyone has to be sure they are complying with all correct laws and legislation.

So before selling evaluate why would you need to sell your business. Following are few assumptions that lead to such conclusion;
• You're bored, burned out by your business.
• You want or need to move to a different geographic area and your business is reliant on its current location.
• You're facing health or financial challenges.
• A pending or recent divorce or family or personal change prompts your need to sell.
• Monetary issues.
• Relations with your partners.

Now after evaluating one need to evaluate the business itself and see it with buyer’s eye. Pinpoint the issue need to be resolved if you want to buy your own property. Selling a business is as difficult as acquiring and setting up of a new one. Main reason for that is you never know whether you will be compensated justly for your business. Also to convince the buyer of viability of the business success after wards need a lot of convincing to do. This includes negotiation and evaluation of warranties, Employee and third party contractors and lease agreements. A buyer is always looking out for a sensible choice and would like to contemplate on options that are of least hassle for him. This makes a seller even more particular about little Nitti gritty details of his business which he intends to sale. In scenario like these a sale agreement creates a legally binding relationship between a seller and buyer, hence resolving all issue regarding a sale process.

Following are the key issues need to be resolved in a sale process
• Fair price tagging of the commodity on sale.
• Risks and warranties.
• Undisclosed and disclosed debts and liabilities associated with the business.
• Employees and contractor contracts and retention.
• Litigations and licenses issues related with the company.
• Intellectual property of the business and its ownership issue(whether it is owned by individuals of the company or company itself)
• Tax returns.
• Indemnities and fall back mechanisms in case sale agreement is breached.

How a sale agreement resolve all these issues
The business sale contract is the legally binding document which, once signed, sets out the contract for sale, specifying:

• The assets that are sold
• The price
• The terms of payment
• The effective date
• The conditions under which the sale will actually be concluded.

A business sale agreement helps resolve the above mentioned issues in an amicable manner, as legal aids of both parties formulate a way out that safeguards interest of both parties. After reviewing liabilities and assets of the business a price mechanism is evaluated. These determinants involve the value of debts, employees and third party contractors along with any assets and other liabilities on the business. After careful evaluation of all these determinants and other legal contracts involved in working mechanism of the organization a comprehensive sale agreement is formulated.


How a seller can minimize his risks while selling the business
A seller should limit the duration of the period under which any claim can be brought to a specific period, say one or two years. Hold back considerable amount in an escrow account. Holding money in an escrow account is to allow you to have some certainty that should you need to make a claim there is money to meet it. Sellers will therefore want to have this money released from the escrow account as soon as the period under which any claims can be made is reached, or even on a sliding scale basis in the period leading up to the end of the claim period. But that doesn’t mean tie too much money in the account if it is a interest bearing one. And remember you will quite a lot of small breaches in warranties and guaranties after the sale process but try not to be bogged down by them.

What should be the contents of a sale agreement?
Following are the key components of a sale agreement
• Interpretation
• Agreement for Sale
• The Purchase Price
• Items to be delivered at completion
• Completion
• Stocks
• Debtors
• Creditors and Liabilities
• Value Added Tax
• Warranties by the Seller
• Future Activities
• The Guarantor
• Communications
• Miscellaneous Matters
• Jurisdiction
• Warranties covering
• Assets
• Stocks
• Accounts
• Employees
• Suppliers and customers
• Licenses, consents and passwords
• Insurance
• Joint ventures and partnerships
• Statutory restrictions
• Litigation
• Seller’s activities
• Contracts
• Defective products and service liabilities
• Properties
• Leasehold properties
• Freehold properties
• Intellectual property
• Internet domain names

How Does A Car/Vehicle Sales Agreement Helps Protect Consumers?

The car sales contract is a legally binding contract. Before signing it, make sure that you read it and if in doubt, raise any questions prior to signing it.

Important: If you have signed contracts to buy a new car with more than one trader, you may have to buy more than one car.

Points to remember before signing a car sales agreement
- You should never sign a blank car sales contract
- You should never sign a car sales contract that is incomplete
- Always insist that all costs are clearly listed
- Do not sign the contract if a delivery date or deadline is not specified
- Do not sign the contract if the contract does not specify the color or any other particulars of the vehicle, whether standard or extra

The Law of Consumer guarantees
Buyers have additional statutory rights under national ‘consumer guarantees’ ascribed in the Australian Consumer Law. It is important that you know that whether or not there is a warranty or extended warranty from the manufacturer or dealer, the car sales agreement or contract cannot exclude those rights. The sale of both new cars and used vehicles come under the Law. Additionally, the cars must be bought from a dealer or manufacturer on or after 1 January 2011.

Note: The Law does not cover vehicles bought at auction or once-off from a private seller

Car Sales Agreements Terms

Contracts for the sale of motor vehicles or vehicle sale agreement by licensed dealers (if not sold to other dealers or sold by auction) are regulated under the Motor Vehicle Dealers Act. Therefore, these are legally binding contracts and, hence, they must be in writing. They must also contain certain prescribed terms and conditions which explain the rights and responsibilities of both the purchaser and the dealer under the contract. Furthermore, they also help determine how contractual matters are dealt with.

The prescribed terms and conditions generally include the following key terms:

• A copy of the contract must be given to the buyer at the time he or she signs the contract
• A condition that the contract does not become enforceable until after it is signed by the dealer and duly accepted by the dealer
• Detail the exact terms of any financing available
• Details on contract termination by either the consumer or the dealer
• Details on any price fluctuations before delivery and how to handle it

By law, the dealer should deliver a new vehicle within three months and a used vehicle within one month after the car sales agreement has come into effect. Otherwise the contract can be cancelled.

Note: If there are additional terms and conditions in a car sales agreement, such terms must not contradict or diminish the requirements of the prescribed terms and conditions. Net Lawman provides professionally drafted Car Sales Agreements for both sellers and buyers of a car/vehicle. These documents ensure that they are compliant with existing laws and help in maximizing protection for both parties by including the necessary prescribed terms and conditions.

Why Need Car Sale Agreement?

This question can be best explained with a situation of a blog user who recently was going to sell his car because there wasn’t enough space in garage. An elderly man with his family came and sees his car. He agreed to buy and gave the car owner $200 deposit. But both parties didn’t sign any papers and the car owner didn’t even issue him a receipt to say he got the $200 from the buyer. As narrated by the blogger few days later he changed his mind and decided not to sell his car as his girlfriend moved out of home since he again had space for his car. Car owner left voice message on buyers’ phone but he replied angrily and said he want damages to be paid because apparently they had a verbal contract.

Reason to put up this case study is to elaborate the importance of car sale agreement. Since the buyer didn’t had any written agreement he cannot prove in the court that he deposited any money or they reached any contract or they agreed upon any warranties or else. The payment of a deposit does not in itself mean that a contract was formed. For an agreement to be binding its terms must be certain. While a contract can be void for uncertainty, a court will generally try to uphold a contract with vague specifics by applying a 'reasonable test'. So that in the present case the court would likely conclude, for instance, that the buyer would pay the balance within a 'reasonable time.' If payment were made within a week or two of the car being ready for collection (i.e. the plates changed and the car alarm removed) then that would be "within a reasonable time."

In a civil dispute the buyer only has to prove his case on the balance of probabilities, and unless the car owner is prepared to lie under oath, and deny that he accepted a $200 deposit, the court is likely to accept it was made as a deposit to secure the purchase of the car.

What needs to be done prior to negotiate a car sale agreement
Prior selling a car seller needs to be certain whether it’s his final decision to sell his asset. On reaching the final decision next thing is to advertise his intention on sale forums in print and web medium. Afterwards you need to fulfill following steps

• Complete, tear off and send the 'Notice of Disposal' section of the car's Certificate of Registration to the nearest Motor Registry.
• The buyer must, within 14 days of purchase date, provide in person at the nearest Motor Registry.
• Proof of identity.
• An 'Application for Transfer of Registration' form
• Certificate of Registration
• Roadworthiness inspection report (pink slip)
• Transfer and stamp duty fees
On completion of following formalities the buyer then can demand following guarantees in case he is buying the car
• Title(Owners name is must) to the goods
• Undisturbed possession of the goods(Pay off and other issues)
• There are no undisclosed securities on the goods.

One thing more before you purchase a used car, you should always check the Register of Encumbered Vehicles (REVs) in the state or territory where the vehicle is registered to confirm whether there is an outstanding debt on the vehicle. By doing a REVs check, you can confirm whether the vehicle is clear of any encumbrances (i.e. unpaid debts). A clear REVs certificate on the day that you are purchasing a used vehicle protects you from repossession due to a previous owner's unpaid debt. To do a REV check, you may need to supply the following vehicle identifiers:

• Registration number. 
• Registration state.
• Engine number.
• VIN/chassis numbers.

 What needs to be included in the car sale agreement?
Car Sale Contract is quite a negotiable entity and it solely depends upon comprehensive understanding between the buyer and the seller. For general idea following contents are included in the agreement but again it depends on the circumstance
• Specifications of the vehicle.
• Agreed terms.
• Warranties by the seller.
• Pay off mechanism.

What kind of guarantees is mentioned in vehicle sale agreement?

Buying a car is always a tricky situation as a consumer because of the uncertainty of what you are buying. Not just the old cars but new cars may also contain flaws as per your desire and requirements. Legally you as a consumer can cover yourself by negotiating comprehensive warrantees and then document them in a form of a vehicle sale agreement. These warrantees are related to the engine run time to security system. A comprehensive and well drafted agreement provides ample space for fall back mechanism in case there are any difficulties after you acquire the car. As seller one must be care full while committing to the warranties because you need to honor them in the future, so one must be aware of draw backs and faults of the car while selling it.


Following are few warranties rendered for the new cars
• Car needs to be of promised quality - safety, durability and free from defects
• Acceptable in appearance and finish and perform as expected.
• Car needs to be fit as per the purpose is promised.
• Demonstration model and sample car will match the actual one.
• Advertised description of the car needs to match the actual one.
• Honoring of express warranties.
• Provision of spare parts and repair facilities need to be rendered for a reasonable time.

When it comes to old cars different set of warranties are required. In some cases the cars are not paid off. Or it might turn out the car is not up to the safety and fitness standards. Common warranties rendered for used cars are as following

• Title(Owners name is must) to the goods
• Undisturbed possession of the goods(Pay off and other issues)
• There are no undisclosed securities on the goods. Before you purchase a used car, you should always check the Register of Encumbered Vehicles (REVs) in the state or territory where the vehicle is registered to confirm whether there is an outstanding debt on the vehicle. By doing a REVs check, you can confirm whether the vehicle is clear of any encumbrances (i.e. unpaid debts). A clear REVs certificate on the day that you are purchasing a used vehicle protects you from repossession due to a previous owner's unpaid debt. To do a REV check, you may need to supply the following vehicle identifiers:
• Registration number.
• Registration state.
• Engine number.
• VIN/chassis numbers.


What should be the contents of vehicle sale agreement?
 vehicle selling contract is quite a negotiable entity and it solely depends upon comprehensive understanding between the buyer and the seller. For general idea following contents are included in the agreement but again it depends on the circumstance • Specifications of the vehicle. • Agreed terms. • Warranties by the seller. • Pay off mechanism.

Is it legal to allow you guests on boat if you are in boat share agreement?

A boat share agreement is a legally binding document which enables a boat owner to share his boat to any individual or group of people for a specified time solely for leisure purposes. During the course of time when the boat is under sharer use he is entitled to fair use of the boat which includes he can invite guests on board provided they are not causing any damage to the boat. This is simply a matter for negotiation. Also for your friends safety it is good to have a boating license which can be obtained after passing boating regulatory tests as it enables you to sail safely.

Good thing about boat share agreement is the document is open for flexible options. Still then in order to formulate fall back mechanism it is good to negotiate terms. It depends on boat owner and acquirer willingness to open up on options as for acquirer a boat sharing is a good option instead of paying a lot in maintaining and owning a boat. Few of the aspects while negotiating an agreement includes whether the owner will provide its own help on board provided if the sharer is not aware of sailing the boat or how the handover will be conducted after the use of the boat.

Similarly terms like how many people can be accommodated on the boat. The parties might also agree to set morning/afternoon/evenings, half days or whole days every week as per acquirer and owner discretion.

Following are the few more key aspects that need to be elaborated while entering into the agreement.
• Terms of beneficial interest - beneficial trusts provision.
• Price and payment for the Boat.
• How many people allowed into occupation at one time and who they may be.
• Who and how will manage payment of expenses.
• Management of the Boat.
• Undertakings by the parties.
• Alternative exit strategies.
• Effect of termination.
• What if someone wants to sell his share or sell the Boat?
• Other legal provisions.

 Boat sharing can be of two types one that I mentioned above is on small scale and require less comprehensive legal documentation. All you need is a simple yacht share which involves the boat owner and one or more than one acquirers who co-own the boat on limited basis. You can enjoy the sailing experience for a small percentage of the cost, and forget about the hassle of cleaning, berthing, insurance and maintenance. For busy professionals or people with young families, it’s a very appealing idea. Its hassle free and require less litigation and if you enjoy better relations with boat owner it’s even better. Second type of boat-share scheme is any arrangement involving the shared use of a ship and boats on commercial basis. These are variously referred to as fractional ownership, time-share, syndicates, and club share, boat share and trust schemes. Ships and boats are jointly owned and registered in the names of persons with equity in the ship.

Many management entities operating or associated with boat-share schemes are legally considered to be the owner of the vessel, because the company exercises the powers of the owner and allows it to be operated by members of the scheme. You should carefully consider all the legal and financial obligations before putting ink to binding boat-share or membership contract if you plan to join a private syndicate. Also you need to know what you might owe or be liable for if the syndicate meets an untimely end. Though litigation in this case is lengthy but equity holders and syndicate must formulate and sign agreement. Also as equity holder you should know where the boat will be moored and if your contract gives you reciprocal rights on other boats or fleets. Apart from that happy sailing and enjoy your ride.

Can you assign option right to third party in case you are unable to honor option period

As per Australian law any buyer while exercising option over land or any property; most likely can assign its benefit to a third party. This means that if you can't buy the property, you can assign the option to somebody else, and they can buy the property according to the terms of the contract. In other words, they can take your place in the deal. You can let your kins to buy the property, or you can assign it for a fee to someone, and if negotiated can get your option fee back from your assignee.

Call options over land are now a days becoming very common in real estate developers as it provide a chance to earn big dividends. Let suppose if you are anticipating investing in fast food joint at a place where there are considerable youth based businesses and there is a chance of business success in the future. Due to lack of finances at the moment you might not be able to buy a property at the moment but the thought of losing the proposed business sight to another buyer bothers you as well.

So you simply lure the owner in to signing an land option contract by offering him an option fee in case you are not able to buy the property in specified period of time. This way you can setup and run the business during the course of option. And also to remain on safe side you assign an assignment (Kin, friend, close associate or third party), who will buy the property in case you are unable to buy the property in specified time. This way you might enter into partnership with the assignment in the future while remaining associated with your investment. But while formulating the agreement if the seller is against the idea you need to drop this clause, the contract must prohibit an assignment.

To be fully effective, a prohibition against assignment must be drafted with care. Option overland agreement is suitable for any type of land - field, farm, shop, garage, house, derelict site, or other land. In case you are ready to buy the property; the main thing to consider is the date of the sale agreement should be the date the option is exercised.

Apart from assigning assignment what else needs to be considered while formulating the option agreements
Every business deal requires a comprehensive agreement which covers all the aspects required to complete the deal while removing doubts. An option to buy anything except land or financial instruments is a transaction you can negotiate without interference from the law. You can buy an option to buy a domain name, a patent, or a car under any terms you like. To protect yourself however, you must have a water tight written agreement.

This is particularly important for an property option contract because so often, the optioner takes some action to either commit to the purchase or enhance the value of the subject matter. Either way, the seller would be tempted to change the terms if you had not tied him down. While preparing a contract you might consider these matters:
• Parties included in the deal and their information.
• Land.
• Option fee and professional fees involved to complete the process.
• Period of option to be exercised
• Conditions precedent to the grant and exercise of the option.
• Caveat.
• Assignment: In case buyer is unable to exercise option he will nominate third party to exercise option.
• Sale Agreement if the option is exercised.
• Price which may be fixed for all time, or be variable during the option period. The legal requirement is that the price be known, or be negotiable.
• Disclosure notice: If local law obliges a seller of land to give a buyer a disclosure document, the option contract might require that to be done in the period between the date the option is exercised and settlement day under the sale agreement.

And what are the contents of a comprehensive option agreement? 

Following are the components that formulates the agreement
• All the variable matters in one place for ease of completion.
• The essence of the agreement.
• Calculation of price or additional price or extended option.
• Confidentiality.
• Indemnities.
• Many other usual provisions to protect your interest.
• Property and option details.
• Provision for buyer to nominate the purchase to someone else.
• Sellers warranties as to the current planning status of the land.
• An optional director’s guarantee, in case the seller is a company.
• Inclusion of any unregistered rights over adjacent land.
• A separate notice letter to exercise the option
• Property and option details.
• Registering the option.
• Assignment.
 • Buyer’s warranties.

Facts and Key Points of A Distribution Agreement

A distribution agreement lays down the different rules and requirements under which a manufacturer can have its products distributed by a specialist distribution company. The agreement will also specify the rights and obligations of the parties to the agreement.

When Do You Need A Distribution Agreement?
Generally, manufacturers should only look at entering into a distribution agreement once they have the final product that they want to release to the market.

Why Do You Need A Distribution Agreement?
Promoting and selling products can be challenging for manufacturers, especially for those that either have no experience in distribution or lack the necessary infrastructure, resources and funding. Whereas, specialist distributors are usually well established and have developed networks of retailers in their portfolio. You can significantly benefit from distributors, whether in terms of negotiating better rates or reaching difficult territories.

Key Points Of A Professionally Drafted Distribution Agreement

Expand Gradually
Align only with a new distributor if the distributor is proven in a territory. Furthermore, make sure that you assign a territory that is not too large initially.

Termination Of Distribution Agreement
The best distributor agreement allow for termination for cause and for termination for convenience. Under this clause, a termination notice requires a 30 days’ notice period. The clause and responsibility for cause need not be argued, helping all parties to focus on their respective objectives. Additionally, the distributor agreement must spell out responsibilities of both parties during and after the life of the agreement.

Annual Termination And Semiautomatic Renewal
This is a routine procedure among experienced players and requires no cause when placed in effect. Under this point, the agreement provides for opportunities to call for termination of the agreement, usually at the end of the first full calendar year and thereafter, after the agreement is first placed in effect. A Notice of Intention to Not Renew is required 30 days before the year-end.

Exclusive Or Nonexclusive
There are times when distributors require an exclusive territory as an incentive to allocate adequate resources. Proceed with care here, and find alternative ways to promote performance in agreements without restricting yourself or the distributor.

Price Fluctuation
To protect yourself in uncertain economic times, for example during periods of inflation, you need to ensure that you have the opportunity to pass along any increases in cost. Fundamentally aggressive price increases are by law not allowed. A well-thought out distribution agreement can ensure that it allows you and the distributor a price increase, when necessary, by simply serving a 30-day notice. This greatly reduces any opportunity for conflict whilst maintaining the principle of fairness in the partnership.

Conclusion
Distribution agreements are important to maintaining a successful relationship between a distributor and a supplier. A poorly drafted distribution contract often leads to a legal skirmishes that takes up unnecessary resources including management time, financial resources and legal representation and proceedings.

A well-written agreement will help eliminate these stresses and allows the distributor and manufacturer to focus on things that matter.

Net Lawman Australia can help you with professionally drafted Distribution Agreements for your specific situation. Net Lawman Australia does this by ensuring that you understand real law in plain English.

Key Components of A Business Partnership Agreement

The Australian Securities and Investments Commission (ASIC) is Australia’s corporate, markets and financial services regulator. It is an independent Commonwealth Government body, and is not only set up under the Australian Securities and Investments Commission Act (ASIC Act) but also administers it. It carries out most of its work under the Corporations Act.

Establishing a business is a challenging undertaking. And so, business owners end up neglecting a vital step in the process of securing the future success of their business – a business partnership agreement. This article will aim to answers some of the more commonly asked questions regarding these agreements and will attempt to outline the benefits of the agreement.

What Is A Business Partnership Agreement?
This agreement is a written document between the partners of a business, and is best prepared at the start of a business. It ensures key points about the business are covered including business funding, business structure, business management and business direction. It further outlines the various responsibilities and obligations of the partners. It is also designed in a way to determine issues in advance and the ways to deal with them should they arise in the future.

Why Do You Need A Business Partnership Agreement?
The agreement is a legally binding document that can help avoid or minimise risks to individual partners in the event of any future dispute. Because every business is unique and every partner is different, a professionally drafted business partnership agreement can help in minimising the potential for conflict by helping to manage its unpredictability and its cost.

Key Components Of A Business Partnership Agreement
A valid and a legally binding partnership agreement will be unique to your situation and will generally specify details of the following key components:
• Detailed structure of the senior executive team
• Rights and obligations of each partners
• Details of how any deadlock will be resolved
• Financial arrangements, including details of banking, accounting and auditing
• Profit and loss share of each partner
• Details of how profits and losses will be distributed
• Details of each partner’s contributions
• Business structure, direction, and objectives
• Partner salaries and benefits
• Separation of the partners in the event of a partner’s death or if a partner wishes pursue other opportunities • Partnership agreement termination or cancellation
• Details on matters relating to a business sale or buy-out
• Restrictive covenants

 What Happens If A Partner Leaves The Business?
The agreement should take this factor into consideration and provide specific provisions for situations when a partner leaves the business. It should identify requirements for the termination and/or cancellation of the agreement by a partner. What is important to note is that even if the business partnership seemingly agree on everything and the thought of ever running into disputes or any kind of conflict in the future is implausible, having a professionally drafted business partnership agreement will ensure that the goodwill of the partners and the business is kept intact with the protective features of the agreement.

Net Lawman Australia offers a comprehensive library of legal documents, including Business Partnership Agreements and Shareholder Agreements that are remarkably simple to use for all your legal documentation needs. Whether you wish to use these documents on an as-is-basis or edit them according to your requirements, Net Lawman Australia has made it very simple for you to understand real law in plain English.

How Do Consultancy Agreements Help Protect Both The Client And The Consultant?

Consultancy Agreements are also known as Consulting Contracts or Consult Agreements. These agreements are commonly used when one party a client hires another party who acts as a consultant for the client in order to perform specific tasks on their behalf in exchange for a pre-agree upon fee.

One of the most argued elements in a Consultant Contract is the treatment of intellectual property rights. For example, a consultant will usually be the first copyright owner of a product created during consultancy work for a software product. Therefore, a properly written contract must specifically indicate whether the copyright in the work product is retained by the consultant or assigned (i.e. transferred) to the client. Additionally, if the work product is retained by the consultant, then it should specify if it will be licensed to the client. Licenses can be on an exclusive or of a non-exclusive basis, and the work product may have various intellectual property rights which may require different handling.

Clauses, that make a Consultancy Agreement robust and well thought-out, include covering the full scope of services, the duration of the work, payments, fees and expenses, data protection compliance, information and approval, intellectual property, liability, and other relevant terms that help ensure protection for both parties involved in the work.

Following are the essential items that should be part of a properly drafted Consultancy Agreement:

• Definitions of service
• Appointment By The Company Of Consultant and Consultant’s Fees
• Covenant And Representations By The Consultant
• Use of Company's Facilities
• Guarantees And Indemnity By Consultant
• Confidential Information
• Intellectual Property
• Non-Compete and Non-Solicitation
• Termination, Cancellation, and Notice Period
 • Contract Termination method and reasons
• Post Termination Payments
• Return Of Confidential Information Or Other Company Property
• Survival Clauses
• Consultant’s And Employee’s Obligations Towards Each Other & The Company
• Notices
• Whole Agreement
• Governing Law And Jurisdiction
• Severability

A Note On Intellectual Property In Consultancy Agreements
Intellectual Property is considered to be one of the most contentious issues in a consultancy agreement. The work product of a consultant will usually be protected by copyright (e.g. if the consultant is producing written reports or software code). The consultant will be the first owner of that copyright.

The consultancy agreement should specify whether the copyright in the work product is assigned (i.e. transferred) to the client or retained by the consultant - and if it is retained whether it will be licensed to the client. Licenses may be granted on an exclusive or non-exclusive basis. Often, the intellectual property rights in the different elements of the work product will required different treatment.

The consultant may be an individual or a company. It may in some cases be important - for both consultants and their clients - to ensure that a consultant does not become an employee of the client.

Many Names. One Purpose
Although Consultancy Agreements are also commonly referred to as consultancy contracts, letters of consultancy, agreements consultancy, consultancy document, consultancy agreement, forms consultancy, form for consultancy, the fundamental purpose and scope of these documents remain the same – to lay down specific guidelines by which the consultant and the client are well-protected and that both parties get the results as per agreed terms and conditions of the contract.

No matter what name you use to identify these contracts, Net Lawman Australia understands that there are various factors to be considered when using ready-to-use drafted consulting agreements and contracts, and provides specific and professionally drafted consultancy contract templates which you can also customize and adapt according to your specific situation, without losing out on the important elements of the contract.

Why Should you Consider a Prenuptial Agreement?

Pre nuptial is agreement that is made between the couples before the marriage to decide the issues about assets. It is used to preserve the property which is owned by the individual party prior to the marriage. It is the beauty of the document that it not only protects the current assets but also protect the future assets. Your plan for all sorts of things in life that are pretty unpleasant like your Will and life insurance, so why not think about a prenuptial agreement. Mostly, the disputes between the couples arise on the financial matters. So, prenuptial agreement provides the solutions to all financial matters. It promotes the healthier relationship between the couples. It guarantees that relationship is entirely based on love and parties want to continue the relationship without considering the each other assets.

Net Lawman provides the comprehensive pre nup agreement. Such as:

The ante nuptial agreement also provides the chance to couples to negotiate all the issues prior to the marriage. So that, taste of their marriage cannot be diminish. It ensures the smooth running of the married life. Each couple must enter into prenuptial agreement before the marriage because it ensures the successful, happier and lovely matrimonial life.

Pre nuptial agreement give the opportunity the party to decide their assets otherwise their assets will be divided equally between them. Prenuptial agreement supports the matrimonial relation because marriage is not only a physical or emotional bond, but it is also a financial union. Each party must describe his assets in great detail into the agreement. Prenuptial agreement is also known as pre marital, ante nuptial agreement.

What is law about pre nuptial agreement?
The pre nup agreement in the Australia are called binding financial agreements. Prenup agreements are legally enforceable in Australia. Family Law Act 1975 validates the pre nup agreements in Australia. It allows the couples to enter binding financial agreement before the marriage to decide the issues about divisions of their assets. It is the legal requirement that both the couples must seek the independent legal advice before entering into pre nup agreement. If both parties have failed to do so then the agreement will not be legally binding. The court has power to declare this agreement invalid if circumstances have changed making the agreement impracticable to be carried out.

For a pre-nuptial / financial agreement to be legally binding, both couples must:-
• Signed the agreement in the presence of witness; and
• Receive the independent legal and financial advice about the implication of the agreement.

You can cover all issues in pen up agreement like the division of assets and spousal support arrangements. This agreement must be drafted in accordance with section 90B of the Family  Law Act 1975. Be sure to sign plenty of time before the marriage so that it can be proven that the contract was not signed under pressure.

Application and features
 
• Suitable for any couple, about to be married;
• Written in plain English – no legal jargon;
• Explanatory notes to guide you at every stage;
• Back up support and advice available;
• DIY today, no solicitor’s fees

Prenuptial Agreement
Suitable for any people getting married in the future. Includes references to financial accounts, houses, other property, furniture, utility bills.

When Do You Need A Loan Agreement?

In essence, cash loans come in very handy at time of need, but due to the nature of this facility, they can cause an uneventful situation into an extremely dangerous one. Most of the time this happens because either the borrower cannot pay up the loan or the borrower failed to read between the lines of the terms and conditions of the credit facility. The latter reason is when you should pay particular attention to the document otherwise known as a Loan Agreement. It is therefore very important that you understand your own situation. And accordingly, before you go ahead and take that leap of faith, Net Lawman Australia advises that you first get acquainted with this introductory guide on the subject.


What Is A Loan Agreement?

It is a legal obligation that entitles a lender to be paid the principle amount plus any interest by the borrower pursuant to the terms of the agreement. In the Australian Courts, the agreement is a legally binding contract and is enforceable by the courts. The agreement will offset all and any argument regarding the loaned amount as a gift. This is important in particular where family or friends are involved in the transaction.

When Should You Have A Loan Agreement?

If in a family, you will need a loan agreement if your partner fails to recognise that the amount you lent him/her was not a gift, but instead was a loan from you to him/her. Furthermore, if in a relationship that is at its end, and you happen to loan an amount to your partner that you consider as significant, and you think your partner will claim it as a gift, then you must have a loan agreement prior to the transaction. Otherwise it can become extremely difficult and costly to remedy. If between friends, then you definitely need a loan agreement, as friends often joke around with money, and you realize that one day the joke is on you, as your friend has simply refuses to repay you or simply ignores you.

If in a business, you will need a business loan agreement while lending funds to the business to avoid any unforeseen incident where you will end up holding the wrong end of the rope. A Loan Agreement is a very useful legal instrument that can be drafted to defend against any of the scenarios mentioned above.


Conclusion

A lot of unnecessary and time and resource intensive situations can be mitigated by having a Loan Agreement in place. The agreement lays down the foundations of the rules on how you can control repayments plus interest (if any) that are to be repaid to you. Consider it as a business record which can become an absolute necessity in some other instances, whether for legislative compliance, tax purposes, or accounting practices. And even though this agreement may not necessarily provide protection against bankruptcy of the borrowers, a Personal Loan Agreement will play an important factor in how the repayment of your loans turn out when financial pressures mount.

 Net Lawman Australia provides you comprehensive agreements for an unsecured personal loan. It primarily protects the interests of the lender with standard terms and a large menu of additional provisions from which you may select. With full money back guarantee and guidance notes included, you cannot go wrong with it. 

Net Lawman Australia helps you understand real law in plain English.

Highlights of Separation Agreement

 Separation agreement is a legal and useful document. It does not end the marriage. It maintains the relationship of husband and wife between the couples. It is a document that avoids confusion and misunderstanding between the couples about the division of assets. It is always very important and sensitive matter to decide about separation from your life partner. You must consider all aspects before making this decision. The most unpleasant event in the life is divorce. So, it maintains the matrimonial relation. Separation Agreement made between the couples to decide about the division of the assets and child related issues. It provides the opportunity to you to decide about your financial and children related matter. Otherwise, court will take action to decide these issues.

Highlights
• It authorizes the partners to decide the formula about the division of assets.
• It also gives the opportunity to the couple to decide who will care the children.
• It also provides the opportunity to the couple to decide who will live in family home and how the other property will be divided.
• It also provides the chance to the couples to decide what will happen to joint bank accounts.
• It is a complete document that avoids the disputes and difference between the couples.
• It provides the friendly way for separation.
• Its importance cannot be ignored because it does not break down the marriage and does not create the conflicts between the couples.
• It let the couple to decide about the fate of children and assets by their mutual consent.
• It is not mandatory for the parties to obtain the court order about the division of the property and assets. It must be in written form so that no one thinks to deviate or breach the terms of the agreement.
• It is also called the divorce separation agreement.

What is law about separation agreement?

Separation is occurred when spouses stop living together in a marriage lie relationship. The Family Law Act 1975 Sect 49 defines separation as:

• The parties to a marriage may be held to have separated notwithstanding that the cohabitation was brought to an end by the action or conduct of one only of the parties.
• The parties to a marriage may be held to have separated and to have lived separately and apart notwithstanding that they have continued to reside in the same residence or that either party has rendered some household services to the other.

It is mandatory for separating couples to seek independent legal advice before entering into this agreement. The couples can live in the same house as a separating couple if they do not share bed room and do not attend the social meeting together. It is valid, enforceable and legally binding agreement between the couples. It is made between the couples to record their intention about the division of assets and child custody matters. It must be drafted by following the requirements of Section 90C of the Family Law Act 1975.

Application and features

• A married couple wanting to separate but not necessarily divorce yet;
• A married couple wanting to divorce soon but also wanting the security provided by this legal agreement;
• An unmarried couple wanting to ensure a clean break can use this document.

Net Lawman provides the up to date separation agreement. Such as:

Separation agreement
All embracing, fair and effective written agreement suitable for a married couple who wish to record the agreement that they have reached in relation to their finances.

Is it true your obligations transfer to new owner after novation agreement?

Novation is the creation of a new obligation in the place of an old one, by which the parties agree that a new obligator will be substituted to perform the duties, agreed upon by the old contract. So yes you as business owner are released of all the obligations of paying debt, or completing an assignment and some cases paying of your car. The original obligor meanwhile is released from performing those duties. It can be best described as a document which validates continuation of unfinished project, debt, credits of the business if its ownership changes hands. Need for this document arise when forceful or deliberate sale of a business takes place, and new business owner is willing to continue the running projects agreements with contractors.

Novation Agreement wipe out an old contract and create a new one. Novation agreements can be either objective (meaning that the parties substitute a new contract duty for an old one), or subjective (meaning that a new party is substituted for an old one but contract remain the same with the exception of few clauses.)

If the deed of assignment contract is subjective, the new, substituted party must perform the old party's duties, and the new party also has the right to all benefits owed to the old party under the original contract. Subjective novation also releases the original parties from all duties and extinguishes all rights under the old contract.

What Are the Elements Of A Valid Novation?
In order to have a valid novation, the party asserting it must show that:
• There was a prior valid obligation.
• All of the parties affected by the new contract must agree to the new contract.
• The new contract must clearly show the intention by the parties to discharge the prior obligation.
• The new contract itself must be a valid contract (i.e. it has all of the elements of a valid contract).

The criteria for a successful novation is the complete acceptance of the liability by the new debtor, the acceptance of the new debtor by the creditor, and the acceptance by the outgoing creditor of the new contract as full performance of the old contract. Common usage of transfer of novation agreement takes place in following scenarios.
• Mortgage
• Debts
• Car lease
• Construction
• Services industry
• Personal assignments
• Sale and purchase of assets/Business

Contrary to assignment, novation requires the consent of all parties. Consideration is still required for the new contract but it is usually assumed to be the discharge of the former contract.

Why novation can be difficult
When a contract is novated, the other (original) contracting party must be left in the same position as he was in prior to the novation being made. So novation requires the agreement of all three parties. While obtaining the agreement of the transferor and transferee is easy, obtaining the agreement of the other original party can be more difficult:

• The other original party may not understand the benefit to him of having the original contract novated and require extra information about the process that is time consuming to provide.
• He may need extra assurance to be persuaded that he won't be worse off as a result of the novation (especially common where the novation transfers service contracts between suppliers).
• It is possible that he could play up to delay the transfer and squeeze extra concessions from you.

What happens in case of multiple customers get affected by the agreement
In case of service providers where thousands of customers benefit from your service it is very difficult to persuade every single customer about your sale. So a well-drawn original agreement will contain a provision which permits the service provider to assign (transfer his contract) without the permission of the customer. The deal is then done in the hope that the customers stay with the new owner. The buyer can obtain an indemnity from the seller to cover his loss if many leave. Or the buyer will write to the customers to encourage them to stay. Also the customers might simply make the next payment and thereby confirm acceptance in law. In each of those cases, the new owner will be safe because the customers remain (or become) bound to the terms of the original contract.

Novation agreement in writing
This agreement is suitable in following situations
• Transferring service contracts.
• When either party is resident outside the Australia.
• Ensures a legal transfer as it is drawn as an agreement between all parties.
• Comprehensive provisions provide ideas for you to mold.
The novation agreement contains the following sections:
• Details of the parties.
• Indemnity clause to protect both parties from loss, damage or legal liability once the contract is transferred.
• The novation.
• Existing claims: sets out how outstanding claims against the transferor will be dealt with.
• Other usual legal provisions.