6 Things To Be Considered Before Signing A License Agreement

Every business in Australia needs a valid license agreement to run their companies successfully. Without this document, business owners might have to face some unwanted problems. Besides, there are some intrusive situations which businesses in Australia can become subject to in a License Agreement’s absence. Otherwise, the business and its valuation get affected a lot. Contact the best commercial lawyers Perth and they will make a proper license agreement according to the type of your business. Here are 6 things to consider before you sign a License Agreement.

1.     Not  a one-size-all-fits document

Yes, it’s a fact that formulating a licensee agreement is a priority to many businesses. Conversely, there are many businesses as well who don’t consider it an indispensable document for them. Statistics say that almost three-fourth business owners don’t have a well-planned licensee agreement. Businesses with even more responsible roles surprisingly lack a carefully crafted buy-sell agreement. Some companies even avoid making this document simply by envisaging the sudden death of their owners. This is because statistics have proved that about half of the business owners are more than 50 years old.

2.     Offers reasonable flexibility

When you are in Australia and want to buy a new business, get a license agreement made immediately. This is all due to the good deal of flexibility which it offers. Yes, it consists of convenient terms and conditions which can be amended whenever necessary. This document also gives you a clear idea about the business you are going to buy. It will also familiarise you with the ways in which the buy-sell procedure will function. Most importantly, you need not get into any form of litigation forcibly through this document.

3.     Provides insights to the unanticipated circumstances

There are many situations for which you can plan systematically beforehand. Similarly, there are several unanticipated circumstances which you aren’t prepared for. The importance of formulating a license agreement lies exactly in this context. This document gives you an insight both about your existing and unforeseen circumstances effectively. Future business costs, sudden bankruptcies and taxing conditions are some of them. This document also assists you in deciding your future business owners and shareholders in a proper way. Contact a commercial litigation lawyers Perth to get the best assistance.

4.     Lets you run your business systematically

When you have a well-planned license agreement, you can run your business systematically. This is because a license agreement consists of a number of aspects in it to help you do that. These include ownership successions, a permission to exit anytime etc. The former contains the alternative solutions in case one of the owners dies. The succession plans also contain possible situations like abrupt disability or mutual divorce and their pertinent strategies.

5.     An extremely beneficial document

A carefully framed license agreement can be extremely advantageous for any type of Australian business out there. As a business owner, when you have this document, you can avoid several potential risks successfully. There are many hazards which can act as major impediments in the way of your business. So, you must know how a comprehensive license agreement can save you from these unwanted hazardous circumstances effectively. If you don’t, then chances are there your company’s valuation will go down to a great extent.

6.     Saves you from unwanted defamations

What if you suddenly hear that your former business partner’s spouse is running your company? What if suddenly rumours emerge that one of your partners has sued you for personal bankruptcy? Sometimes, you might come across a speculation that a bank has purchased half of your business. These facts are no way less than false and fall under the category of ‘defamation’ in Australia. By having a substantial license agreement, you can save yourself from these unexpected defamations successfully.

Additional information about license agreements in Perth, Australia

A team of commercial lawyers are competent at guiding their clients regarding their license agreements. Some of the ways in which your commercial lawyer in Perth can assist you are: 

·       Your lawyer will speak to you and give you valuable advice concerning your license agreement’s compliance.  This will prevent you from breaching any of the terms and conditions of your agreement.

·       Your lawyer will also communicate effectively with certain authority officials. Say for instance, officials who are responsible for retrieving the various taxing results. You will get this privilege only if a relevant clause is included in the agreement.

·       Your lawyer will explain to you the various terms and conditions of your license agreement. Your lawyer will also suggest some clauses to be included if necessary. These clauses are chiefly related to your license agreement’s compliance, taxing liabilities and commitments etc.

So, do you also wish to get any of the services above of a first-rate quality? Then, hire a License Agreement lawyer in Perth today! Rest assured that your lawyer will familiarise you with the 6 facts above before you sign your license agreement.