Question

1) What is liability of shareholders against commercial company?

2) What are the Legal differences between the Franchise Contract and the Lease Contract? (write 3)

3) Commercial Storage Agreement, what is that?

Answer 1

1. Liability of shareholders against a commercial company:

• Unpaid amounts of the shares held by the shareholders
• Obligations provided in the company's constitution or in the shareholders' agreement
• In case of breach of directors' duties when shareholders themselves are considered to be directors

2. Differences between the Franchise Contract and Lease Contact:

1. In Franchising the parties have the right to use the brand name. In Leasing the parties don't have the right to use the brand name.
2. In Franchise money is paid as royalties, whereas in Lease money is paid as leading cost.
3. A Lease is a simple contact or agreement. A franchise includes legal formalities and securities laws.

3. Commercial Storage Agreement:
Commercial storage agreements are legally binding agreements that layout terms and conditions under which the property is leased out for storage. The property owner and the business tenant strictly adhere to this agreement throughout the duration of the contract.