Management Agreements

Management agreements are entered into for a whole variety of reasons and there are different types of management agreements. For example, property owners may enter into property or lease management agreement, companies with a fleet of cars may enter into a fleet management agreement, governments have environmental or wildlife management agreements, project managers have project or construction management agreement and financial advisors have wealth or investment management agreement. Management agreements are also associated with artists and sports people and you have specialist management companies managing all aspects of their income from contractual income to royalties and endorsements.

People also enter into management agreements for businesses. Instead of buying the business outright, some people may just like to manage it as they may not have sufficient funds. Other reasons for entering into management agreements are: that the owner does not wish to manage the business and have someone else operate it instead without selling it; the prospective purchaser may want to try operating the business before buying it; or the vendor and purchaser have signed an agreement for the sale of the business with a long settlement date but the purchaser wishes to start operating the business immediately.

When entering into a management agreement for business, some of the things that need to be attended to are:

details of the parties and their respective rights and obligations
the objective of the management agreement and the activities to be undertaken by the manager
the duration of the management agreement and any renewal of the agreement
any fees to be paid to the business owner for allowing the manager to operate the business
the remuneration of the manager and whether the manager will be entitled to the profit and also be responsible for any loss
if the business includes a premises, whether the manager should have a license to occupy and responsibilities and obligations the manager under any lease
responsibilities of the manager for repairs, maintenance and replacement of any equipment and chattel of the business
payment for any existing stock and responsibilities to the suppliers for purchases of new stock
responsibilities of the manager in respect of any continuing contracts entered into by the business, for example supply agreement
responsibilities of the manager in respect of all other outgoings of the business including utility services
the operation of the business by the manager and maintenance of proper banking and accounting records, and adherence to all relevant federal and state laws
what happens upon termination of the management agreement and rights and obligations of the parties upon termination
the disputes resolution mechanism for any dispute arising out of the agreement or operation of the business
confidentiality of any information and any intellectual property including copyright and trade mark licensing issues

More Business Law services:

ASX Listings and Compliance
Business Documentation
Business Structures
Contracts/Advice
Commercial Leases
Corporations/Companies
Corporate Governance
Company Finance and Mortgages
Dispute Resolution & Litigation Services
Franchising
Intellectual Property
Joint Venture Agreements
Liquor Licensing
Partnership Agreements
Reconstructions/Restructuring
Sales and Purchases of Business
Shareholders' Agreements
Terms of Trade
Trade Practices