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QLD Questions Regarding Sale of Business and Lease

Discussion in 'Commercial Law Forum' started by Sandy H, 21 December 2015.

  1. Sandy H

    Sandy H Member

    21 December 2015
    Likes Received:
    Hi. I am currently selling my small beauty business to another party and am self-representing as it's a fairly simple sale. The other party has acquired a solicitor to redraw up the contract of sale I provided them and a Lease transfer document. My original premises lease still has 16 months to go and the landlord suggested that we could just put a first-page cover note to reassign the lease. The buyer's solicitor instead drew up a 7 page 'Deed of Consent to Assignment of Lease' document.

    Everything looks fine except there are two things that concern me:

    1. The Assignor must:

    (a) observe and perform (and meet any liability if applicable) all covenants and agreements expressed or implied in the Lease or made between the Landlord and Assignor despite the assignment and the provisions of this Deed;

    Is this basically saying that if the new owners let the business go belly up or don't pay the rent or breach any of the lease clauses, that I am still responsible for it?

    2. The Assignor is responsible for the costs of preparing this Deed and any legal costs incurred by the Lessor.

    The buyers have arranged for this lease document to be drawn up so, in essence, the Lessor hasn't incurred any costs and probably wouldn't have if we'd done his first method of transfer. If I am self-representing, should I be made to pay these costs?

    Thanks in advance
  2. Sophea

    Sophea Guest

    Hi sandy H,

    Yes, I would respond to the buyer and advise them, their solicitor, or whomever you are dealing with, that you object to the insertion of those two clauses. You are entitled to negotiate fair terms that suit you as well as the buyer.

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