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Negotiation Issues and Examples

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Here are some Negotiatiation Questions I have answered recently:

 

Name: Betty

Subject: sublease contract

Question: Hi:

I am entering a sublease agreement to sublease an office space inside a medical
building from an ophthalmologist to practice optometry.  The building is located
in the city of Orange in California.

The monthly rent will be $2999 per annual term.
However, the first three months of rent will be reduced to $1999 per month while
I get set up in the office. 

The only problem that I had with the sublease contract that he wrote up was
where he states, “Renewal option will be annual on mutually agreeable terms,
with a month-to-month renewal option available, at a rate increase of 6.9%.”
This 6.9% rate increase is just because (in his words) he gave me “a reduced
rate for the first 3 months”, and not based on any calculation with regard to
actual operating costs or common area maintenance.

Can you suggest a fair counter-proposal to this portion of the sublease
contract?
I would greatly appreciate your help in this matter.

Sincerely,
Betty


Answer: Betty:

Why not suggest that if you renew for 2 years, the 6.9% will apply in the first
year of renewal, and there will be no increase in year 3? For Example:
Year 1 Month 1,2,3 $1999
       Month  4-12 $2999
Year 2 & 3         $3200

Another option is to ask for 30 days prior to the lease starting. You would be
allowed to set-up and use the office during this period.That saves you $2999,
approximately 14 months of the increase.

I hope these ideas help!

Best,

Ron Cappuccio
___________________________________________________________


Name: akshay

Subject: building my business

Question: hello Ronald J. Cappuccio sir,
i got your refernce on the web at allexperts.com.
Your profile is so good and i request you to help me in making my business
setup.Currently i stay in chandigarh ,punjab India.I want to setup a food
packaging industry.So i would like to have your expert guidance in setting up my
new industry.
I want to know from where i should start and from where i can get a business
deals in this packaging industry.
Yours advice will be the most valuable and important to me.
Thanking you ,sincerly akshay

Answer: Akshay:

My first suggestion is you get a reliable local lawyer.You should ask the
lawyer:
1. The best form of business entity;
2. Where you should form the business;
3. What permits and licenses are needed;
4. When you have found a location, what zoning and planning permits are needed.

If you want to establish a business in the US, please write me with further
details.

I hope this helps!

Ron Cappuccio
___________________________________________________________________

Name: althea

Subject: opening a new business

Question:

hi Mr. C.  i willing be joining forces with my present employer to open
a new location. what are the most important questions/things i need to know.
thank you

Answer:

Althea:
First, by "joining forces" I presume you are having some equity interest in the
business? Usually, you would want a new Limited Liability Company set up. If you
are not going to control the entity, you should have the LLC be "Member Managed"
with both you and your employer entitled to be managers. You have all the issues
of setting up a new business, plus the control issues and potential licensing
fee issues. You need to outline what services are being provided by your
employer's company and at what cost. What happens if your employer wants to
sell.

Althea, there are so many issues it is next to impossible to outline them all.
You need a really go attorney to negotiate for you.

I hope this helps!

Ron Cappuccio
_______________________________________________________________

===========
Question:
===========
Category: Computer & Technology Law
Location: VA
Subject:  Internet Harassment

I buy & sell on the well known internet sites.  A vendictive competitor is
harassing me thru the internet site.  She has contacted other users & urged them
not to do business with me & she has used my first name in a deragatory manner
in her user id.  I am in VA & she is in Florida.  Would it be best for me to
hire a lawyer in Florida or should I take it to a Federal court since it is
between state borders?  Any suggestions would be appreciated.  Thanks.


===========
Reply:
===========
Category: Computer & Technology Law
Location: VA
Subject:  Re: Internet Harassment

Instead of rushing to court why don't you try your other options? First, I would
contact the auction sites your competitor is using in making her false
statements. Many of them have online complaint procedures. In addition, the
terms of your license agreement with the auction sites frequently have
arbitration clauses and choice of jurisdiction clauses.

Obviously, it would be best to hire a business lawyer to help you if this is
economically worth it.

I hope it helps!

Ron Cappuccio

 

 


Virtualex.com Ronald J. Cappuccio, J.D., LL.M.(Tax) 1800 Chapel Avenue West Suite 128 Cherry Hill, NJ 08002 Phone:(856) 665-2121      Fax: (856) 665-9005 Email: ron@taxesq.com

 
 
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