However, they will consider reforming a contract between parties under certain conditions…

Years ago a commercial builder was in search of a home for his business. He decided on a warehouse property in Palm Beach County, agreeing to pay the landlord roughly $3200 each month.

The landlord needed to sublease a portion of the warehouse and agreed to pay the tenant $200 a month for the space.

Disputes galore

From the moment the lease agreement was signed, the parties started to bump heads over everything from square footage to maintenance and unpaid taxes.

The landlord filed a lawsuit for eviction four months after executing the lease. He alleged failure to properly maintain the building and unpaid rent, among other things.

The tenant filed a counterclaim asking the court to reform the lease due to the landlord’s misrepresentation of the size of the building. He also claimed the landlord used more space than the sublease provided and never paid him any rent.

Getting to the truth

During the trial, the court heard testimony and reviewed evidence from both sides. The following facts were uncovered:

• The landlord misrepresented the square footage of the building causing the tenant to overpay
• The landlord accepted late payments from the tenant and never paid any rent under the sublease

Based on these findings, the court decided in favor of the tenant, stating that the landlord could not evict the tenant by strictly applying the lease that he breached as well.

The court ordered reformation of the lease based on the correct size of the warehouse, reimbursement of overpaid rental payments, and awarded attorney’s fees to the tenant.

Are you dealing with a similar landlord-tenant issue?

Contact our Fort Lauderdale law firm today at (954) 779-7009 to discuss your lease dispute in detail with a lawyer, or email us to schedule a consultation.

Knowing this, it is imperative that you rely only on written agreements that can be enforced by the court if a dispute or lawsuit arises.

This fact was clearly evident in a case involving a dispute over a land contract a while ago…

How it started

A married couple was looking to buy real estate when they ran across land in central Florida. The property was under the control of 6 beneficiaries; 1 of which was the designated trustee.

The parties began to negotiate, exchanging multiple offers and counter-offers. After a bit of back and forth, an agreement between the trustee and buyers was reached.

While there were discussions about how the property could be used, specific deed restrictions were not included in the final contract. The following statement was added instead:

“Subject to buyer and seller agreeing on deed restrictions provided that none of the foregoing shall prevent use of the property for the purpose of building single family house.”

When agreements fall apart

After the beneficiaries realized the price the trustee agreed to was much lower than the appraised value of the property, they expressed concern and followed up with a list of proposed deed restrictions.

The buyers refused to agree to the restrictions without modifications – and the sellers refused to make any changes. The sellers asked the buyers to walk away from the land contract. In response, the buyers filed a lawsuit.

Two sides of the story

The buyers asked the court to enforce or reform the contract with or without the deed restrictions to prevent an injustice from taking place.

The sellers contended that because the contract did not include a list of specific restrictions it lacked essential elements that would make it enforceable under Florida law.

The court’s decision

The District Court of Florida agreed with the sellers and concluded that:

“A court has no right to write a contract for parties where none exists… [T]he deed restrictions were a material part of the proposed agreement. Until they were agreed upon no contract existed and the court could not supply them for the parties.”

This decision forced the buyers to either accept the sellers’ deed restrictions without modifications or walk away from the agreement to purchase. They chose the latter.

While this case involved a lawsuit over real estate, the court’s decision can apply to most any litigation matter where the contract in question is unenforceable – and thus, not worth the paper it’s printed on.

Don’t let this happen to you!

Download our free guide, Business Contracts Basics: What Every Florida Business Owner Must Know about Contracts, to take the first step towards making sure your business contracts are strong enough to withstand the court’s scrutiny.

We help our clients stop relying on oral agreements and strongly encourage others to put the details in writing as well.

With that said, we realize many of you want to know more about the type of agreements you can use to protect your business.

While there are too many to cover in one post, let’s take a look at 5 common contracts you cannot afford to ignore:

1. Non Compete Agreement

A non compete agreement is a contract between an employer and employee that prevents him or her from accepting a job with a competitor for a certain period of time. Employers have been known to use NCAs to prevent losing talent and trade secrets. However, the court can refuse to enforce a non compete agreement that includes terms that are not reasonable for the employee.

2. Non Disclosure / Confidentiality Agreement

A non disclosure agreement (also known as a confidentiality agreement) prevents another person or business from disclosing, copying and sharing confidential information. Similar to a non compete agreement, it can protect your most valuable trade secrets and processes but usually will not affect a former employee’s right to work with your competitors.

If you prefer confidentiality, get a non disclosure agreement signed before you turn over private business information to anyone.

3. Employment Agreement

Hiring a new employee can be an exciting moment for your growing business. But it involves much more than reviewing resumes, interviewing and picking a start date. You must nail down the job description, salary, bonuses, benefits, grounds for termination, severance package options, and a whole slew of other details.

Use an employment agreement to clearly specify the terms and conditions of the employee’s job so you’re both on the same page.

4. Business Lease

A business lease is a contract between a landlord and tenant that specifies the details of a rental arrangement. Because the terms will vary from property to property and landlord to landlord, it’s important to thoroughly review and understand the lease before you provide your signature. You can learn more about business leases here and here.

5. Partnership Agreement

Business partnerships can reap many rewards when all parties agree on the mission, goals and direction of the company. But when personalities start to clash and the parties are no longer on one accord, the once-promising partnership can turn into a messy fight over who gets what and why.

Before you form a business with a partner, consider investing in a legally binding contract that defines the nature of the partnership as well as the obligations and responsibilities of all partners involved.

Starting and growing a business is one thing, protecting it is another. Make sure you’re using ironclad business contracts that can stand the court’s scrutiny.

Next Steps

Grab a copy of our free guide – Business Contracts Basics : What Every Florida Business Owner Must Know about Contracts.

Then, contact our Fort Lauderdale lawyers to have your contracts reviewed by an experienced business lawyer. Call (954) 779-7009 or click here to email us.

The days of using oral agreements and handshakes should be over but the truth is, too many businesses still rely on them to seal their most important deals.

Here’s why you may want to do things differently:

A few years ago, a Florida condo association hired a broker to purchase an insurance policy to cover its condominium tower in Palm Beach County.

The broker procured a policy from a well-known insurance carrier with coverage limits of $50 million.

Within months of obtaining the policy, two hurricanes blew through Florida leaving the condo tower with substantial damages easily exceeding the $50 million policy limits.

According to the condo association, when it expressed concern about the limits and repairs to the broker he assured them the insurance carrier would provide a total limit of $100 million for the repairs.

The association moved forward with more than $100 million in renovations.

When oral agreements go wrong

When the association sought reimbursement from the insurance company for the total cost of repairs, they were informed the policy only guaranteed $50 million and nothing more.

The association filed a lawsuit against the insurance company to recover the costs of repairs, and eventually reached an out of court settlement for only a portion of what it spent.

Due to the insufficient recovery, the association filed a lawsuit against the insurance broker alleging negligent misrepresentation and breach of contract, among other things.

According to the association, the broker breached an oral agreement to take responsibility for any damages incurred due to insufficient insurance coverage. The broker denied the agreement.

Because the court could not confirm the existence of any oral agreement between the parties beyond the written insurance policy, the association was unable to recover the remaining repair costs from the broker.

Don’t let this happen to you. Grab a copy of our digital guide – Business Contracts Basics: What Every Florida Business Owner Must Know About Contracts and learn how to protect your Florida business with ironclad written agreements.

Simply enter your full name and primary email address, click the “Send my Guide!” button below, and check your inbox for a link to the download.

Unfortunately, most of those innovators’ ideas won’t see the light of day due to lack of financing available for start-ups and small businesses.

This doesn’t have to be your reality. If you can’t get a loan financing 100% of your business venture, get creative.

Think of other ways to raise the money you need to make your dream a reality. Here are 4 ideas to get you started:

1. Use your credit cards.

Relying on credit to fund your small business can be risky. If your interest rates are high and you’re unable to pay what you owe, you’ll end up paying much more than you actually borrowed.

On the other hand, if you have credit cards with very low interest rates and a steady income to pay the balance, you’re in business!

2. Find investors.

Network with others in your industry. Find people that share your interests and believe in your products and services. When the right person comes along, you’ll know. Share your business plan and make an offer that is beneficial for both of you.

3. Use your own money.

You know that savings account you have for the new boat? And that zero turn lawn mower you’re planning to buy? Perhaps you can keep the old boat for now and buy the lawnmower after the business is up and running.

Take a good look at your spending habits. If it’s not a necessity, don’t buy it. Instead, use the money to invest in your business.

4. Apply for a loan.

Some people insist there is no way possible you can get a small business loan in this economy. Don’t listen to them.

While they may be difficult to find, lenders are out there willing and able to loan you the money you need. Have your business plan ready before you submit the loan application.

Starting a business can seem nearly impossible, especially when you’re unable to get all of the funding you need from one source. It is our firm’s hope this post will help you start considering other ways to raise capital for your new business venture.

If you need help at any stage of the start-up process, contact our Fort Lauderdale law firm. Call (954) 779-7009 or click here to email us.

It’s in a great location – convenient for you, your customers, and your employees. The size of the unit is exactly what you need with more than enough space to grow.

You’re happy with the rental amount you negotiated and make sure it’s paid on time each month. You even managed to walk away with a couple of neat incentives too. Bonus!

Everything is going well… until you learn the bank officially foreclosed on the property days ago. Gasp!

The landlord was several months behind, despite your timely rental payments. And as far as you know, the property can be sold in an auction on the courthouse steps any day now, leaving you and your business out on the street.

You’re not sure what you should do or where you should turn for help.

Federal law protects commercial tenants

In May 2009, President Obama signed into law the Protecting Tenants at Foreclosure Act, which some believe changed the way tenants are treated drastically.

Prior to 2009, a mortgage lender could repossess a property, nullify the lease that you signed before the foreclosure, and evict you with little notice and no say.

Since then, and for the first time in history, federal law requires the lender (or new owner) to give at least a 90 day notice before evicting any tenant, and may require that your lease is honored until it actually expires.

Contact our lawyers for help

If you are a commercial tenant with a landlord that is about to lose the property you’re leasing to foreclosure, we need to talk right away.

Dust off your lease agreement. Find receipts for your monthly rental payments, and contact our office to schedule a consultation. Call us at (954) 779-7009 or use our online contact form.

Perhaps you have invested thousands of dollars preparing to rent property for your business only to learn the landlord is refusing to honor the contract you both signed.

You are not alone. Florida courts often hear cases challenging the validity and enforceability of commercial lease agreements.

One case in particular comes to mind…

It involved an insurance agency (the tenant), a commercial developer (the landlord), and office space in the highly sought after Miami Beach area.

The background story

The tenant entered into a 10 year lease agreement with the landlord. The lease was signed by both parties, but not in the presence of any witnesses.

At the time the lease was executed, the landlord was still constructing the building. The tenant was supposed to move into the new office space within 90 days of completion of construction.

However, at some point prior to completion of the building the landlord decided it did not want to lease the office space to the insurance agency and challenged the validity of the lease agreement.

From dispute to litigation

In response to the landlord’s refusal to honor the lease, the tenant filed a civil action in Florida court requesting that the lease be honored.

The landlord did not dispute executing the lease agreement. It asserted that because the lease lacked the signatures of two independent witnesses it was not valid and should not be enforced by law.

The court’s decision

After reviewing both sides of the argument, the court relied on a Florida law that governs the disposition of property by limited liability corporations. It concluded:

• The landlord was a limited liability corporation.
• There was no question the lease was executed by an authorized representative of the landlord.
• The signatures of two witnesses were not necessary to validate the agreement.

The landlord was forced to honor the lease, allowing the tenants to move into the new office space.

Are you dealing with a similar issue over a commercial lease agreement? Contact our lawyers at (954) 779-7009 for help enforcing your lease agreement and resolving your landlord and tenant dispute.

You can also grab a copy of our free digital guide to learn more about doing business in Florida with valid and enforceable contracts.

The location seems perfect – convenient for both your customers and employees – and the terms proposed by the landlord are more than fair, right?

Before you make any commitments, make sure you fully understand what lease agreements are and how they work.

A commercial lease is a legally binding and enforceable contract that specifies the terms of the arrangement between you and the landlord.

When you execute a lease, you are agreeing to pay rent (usually monthly) to use all or a portion of the property to conduct business, among other things.

Lease Terms

The terms of a commercial lease will vary from property to property and landlord to landlord.

Utility bills are included in the rental amount under some agreements. In others, you have to pay the utilities each month in addition to your rent.

The same is true for repairs, alterations, and use of the property. The landlord may be responsible for all repairs, but you will likely have to cover the costs associated with any alterations to the space.

As for use, the lease may include clauses that prohibit you from storing certain types of materials and/or using a particular portion of the property.

Read the lease carefully. Understand all of the terms and how they will affect the way your business operates before you offer your signature.

Lease Duration

Most commercial leases are long-term agreements; others cover a shorter period of time. A year-to-year arrangement is considered a periodic tenancy and will automatically renew at the end of each year.

If the lease covers a specific time period (i.e. January 1, 2011 to January 1, 2015) and no other agreements between you and the landlord exist, the lease will terminate on the last day of occupancy.

Commercial leases are complex and binding contracts, and should not be taken lightly. Hire an attorney to negotiate the best terms possible and prepare an ironclad agreement that you are comfortable executing.

Want to learn more about using contracts that protect your business? Grab a complimentary copy of our digital guide – Business Contracts Basics: What Every Florida Business Owner Must Know About Contracts.

Simply enter your full name and primary email address, click the “Send my Guide!” button below, and check your inbox for access to your guide right away.

Many business owners are choosing to lease instead of buy. There is more than enough real estate available in Florida, and landlords are offering incentives to attract good tenants.

Your timing is good but before you kick off your search, consider 3 things: your budget, the type of property you need, and location.

1. Your budget

What you can afford to pay will determine where you can conduct business. This is why setting a budget should be the first step in your search. Once that’s done, you can focus on finding a suitable property you can afford.

2. Type of property

There are different types of commercial properties to consider. You can lease a warehouse to store your products; a retail storefront that is convenient for your customers; or an office space that overlooks some of Florida’s beautiful landmarks.

3. Location

Location, location, location… is one of the most important factors to think about when searching for real estate. The seemingly “right” property in the wrong place can cause you to lose money.

Before you make a decision consider:

• Do you need reliable parking for your customers and employees? If so, an office building with a covered deck is probably more appealing to you than a storefront that only offers curbside parking.
• Do your customers rely on public transportation? Consider a location they can access by train and/or bus.
• Do you prefer an office that overlooks some of Florida’s hottest attractions and landmarks? If so, turn down spaces that overlook vacant buildings and unkempt alleyways.

Finding the right property for your business will take time. It’s not a process you will finalize overnight.

Consider your budget, the type of property and location you prefer, as well as the needs of your customers before you make the final decision.

If you want help navigating the commercial leasing process, click here to email us or give our Fort Lauderdale lawyers a call at (954) 779-7009.

You are not alone. Many small and mid-sized business owners operate on a budget, and share the same concerns in these economic times.

The good news is: more and more lawyers are offering alternative ways for you to pay for legal services.

Take a look at the fee structure options our firm, and many others, offer: