Law Issues - Peter Papadopoulos and Renee Gorgio - Case Study Example

Running Head: LAW Law Name Course Institution Date Part1: File Note Case Summary On March 26, 2010, Mr. Peter Papadopoulos accompanied by his sister Renee Gorgio and his grand parents, Natalie and George Youris arrived at the office to seek legal counsel. Peter wanted to get advice on how he should go about on a new business venture. He explains that he and Renee, his sister wanted to acquire a small bakery business that is at Ash filed 124King Street. The purchase price of the bakery business is $ 195, 000.00 .Presently, Peter did not have any money to acquire the property however his sister was willing to invest $50, 000 that she acquired after selling her house. Renee was willing to invest this sum of money since she believed that the business would be successful under the management of her brother. By investing this money she would reap the rewards as a partner however she did not intend to take part in the day to day running of the business. In order to raise the total amount for the purchase Peter sought a loan from his grandparents who, according to Peter agreed to loan him $150,000 that is secured against their home. Peter produced a copy of the sale contract, which was a standard contract that can be recognized from the Commercial & Estate Practice file. The contract had a lengthy list of terms and conditions with several attachments. The front page of the contract depicted that the vendor was a company represented by a known firm nevertheless, the acting solicitor was unknown. Peter explained that there was need to proceed with the legal processing of the transaction as soon as possible since the vendor was putting pressure on him to exchange the contract as soon as possible lest other interested parties purchase the bakery. Peter instructed that the exchange of contracts should take place by the end of the week. Issues There are several legal issues emerging from the above case scenario. A major issue emerging from this scenario lies in the lack of proper presentation of interest for the involved parties. In this case the involved parties include, Mr. Peter Papadopoulos, Renee Gorgio, Natalie and George Youris and the vendor company. In regards to Mr. Peter Papadopoulos, his interests lie in purchasing the bakery at Ashfeild 124 King Street from the vendor company after securing a loan from his sister and grand parents. As Peter endeavors to transact with the vendor company, the emerging legal issues revolve around the terms of the contract with the vendor company. There is need to ascertain the legitimacy of the contract and the property to be sold. On the other hand, other legal issues surrounding Peter are reflected with his loan agreement with his sister and grandparents (Fillmore & Kyle, 2002). In regards to Renee Gorgio, Peter’s sister apparent legal issues revolve around the presentation of her interests as an investor. Given the fact that Renee has contributed to the purchase of the bakery and intends to be a mere share holder rather than to take part in the day to day running of the business her interests need to be safeguarded. The fact that she does not have any form of legal representation generally presents a legal issue since there is need to validate the dynamics involved in her getting returns from the business. Natalie and George Youris, Peter’s grandparents will act as the key contributors to the purchase of the bakery. Given the fact that their contribution was solicited from a loan that was secured by their home there is need to fully represent their interests. Considering that both Natalie and George Youris are not fluent English speakers, there is a critical need to establish whether they consent to these arrangements. Moreover, a key issue arising is reflected on how Natalie and George Youris can as well be partners of the business thus getting returns from the business that will not only pay for the loan but also assist in their up keep. In a nutshell the main issue revolves around establishing whether the couples fully consent to the arrangements put across by Peter and the proper presentation of the interests such that they are able to reap from the returns of the business. Establishing the legitimacy of the terms put across by the vendor company is also a main issue in the above case scenario. Given the fact that the company’s interests are represented by unknown solicitors who have put pressure on Peter to carry out contract exchange in swiftly so that he could beat other interested parties, the legitimacy of such terms is put to question. In addition, other legal issues from the above case scenario may revolve around the provisions of the standard contract and the implications of these provisions thereof (Curlander, 2000). As the authorized solicitor in the case there are several professional responsibility issues that arise. For instance, a solicitor I am charged with the responsibility of advising the client in this case Mr. Peter Papadopoulos of the appropriate measures that should be carried out and the various variables that are involved in the transaction. Furthermore, as the solicitor I am charged with the responsibility of upholding integrity and impartiality such that the interests of other parties involved that is Renee, Natalie and George Youris are safeguarded. In addition, an issue emerges on whether the Peter, Renee and their grandparents should have similar or independent legal representation in this matter. Putting in mind that they are family members, should some of the aspects involved in this transaction be addressed at the family level by a common family solicitor? Owing to the fact that Peter is hopeful that the business will be successful and will start making profits immediately there is need to consider the various variables involved in case the business does not bring out the expected outcomes. For instance, factors that need to be put into account may include, given the fact that Renee is not involved in the running of the business is she liable to any form of compensation following the collapse of the business? Secondly, are Natalie and George Youris liable for any form of compensation following the collapse of the business? How will the acquired loan be repaid following the collapse of the business and who will pay for it? Risks Involved Evidently, in the above case scenario there are a number risks involved in regards to the transaction between Peter and his family and the exchange of contract between Peter and the vendor company. As far the agreement between Renee and Peter is concerned, the emerging risks may come about when there are no set of provisions or contract terms legally put into place. A set of provisions or contract terms on the agreements will give directions on what percentage of returns Renee is entitled to, her privileges or power that she is entitled to as an investor in the bakery business. Additionally, a set of provisions or contract terms on the agreements will give directions on whether Renee is liable for any form of compensation following the collapse of the business. In a case whereby proper guidelines or provisions are not put into place in a legally binding contract there is bound to be risks involved that could eventually lead to serious altercations between Peter and Renee. The alleged agreement between Peter and his grandparents that necessitates that his grandparents offer him a loan of $ 195, 000.00 by securing their home with the loan can be seen as a major risk. The main risks lies in the possibility that Natalie and George Youris are not fully aware of the conditions of the agreement and do not consent to it. Given the fact that both Natalie and George Youris are not proficient in English, it is possible that George and Renee could have taken advantage of this situation by imposing a loan agreement that their grandparents are not fully aware about it and may not consent to it. Consequently, these may bring about legal issues that could lead to the grandparents taking legal action against Peter, Renee and the firm in general. Another foreseen risk may result following the collapse of the business. Given the fact that a legally bidding contract has not been endorsed concerning the terms of loan payment, the collapse of the bakery business may bring about an intricate dilemma (Corigiliano, 2002). The legitimacy of the vendor company, its solicitors and the terms of the standard contract is imperative in this scenario. In the course of exchanging the sale contracts, Peter is faced with the risks that the solicitors could be fraudulent or the terms of the contract may be scheming or swindling in one way or the other. Part 2: Letter to Mr. Peter Papadopoulos Jackson & Peter Lawyers P. O BOX 6328-6372 Melbourne, Australia. 16th July, 2010. Tel: +254-568-672 Peter Papadopoulos P. O BOX 237-3433 Adelaide, Australia. Dear Mr. .Peter Papadopoulos RE: CASE ISSUES Subsequent to seeking the intervention of our firm in your case, I find that it is appropriate for us to legally advice you on the nature of the transaction that is about to take place and the various variables involved thereof. There are several factors that should be put into account and enforced before the exchange of the contract with the vendor company. Foremost, it is will be necessary for our firm to formally establish whether your grandparents are fully aware and consent to the agreements that you expressed on their behalf. We deeply understand and respect the fact that you would prefer addressing the loan, investment and partnership issues within the family circle. Nevertheless, we strongly advice that due to the intricate nature of this transaction, it is vital for the interests of each involved party to be represented independently. This does not necessarily imply that you should hire various solicitors. Our firm can adequately provide the needed platform whereby individuals can be advised and represented independently. The interests of the parties involved will as well be safeguarded. Lastly, there is need for us to establish the legitimacy of the vendor company, its solicitors and the terms of the contract. As your solicitor, I will personally go through the contract, thereafter contact the vendor company and its solicitors for further clarification. This will ensure that your interests are safeguarded and you are not defrauded. Your trust in the services of our firm is highly appreciated. Yours Sincerely, صص James Adams Legal adviser Part 3: Way Forward In order for the transaction involving the purchase of the bakery business to be carried out appropriately according to the set standards of commercial and estate practice several aspects should be put into account and enforced by the involved parties. Prior to conducting any formal procedure it is essential to establish whether Peter’s grandparents are fully aware and consent to the agreements expressed on their behalf by Peter and Renee. It is not enough to rely on the testimonies of Peter and Renee, therefore it is necessary to establish the stand of the grand parents in this matter. This goal can be actualized by involving a proficient Greek communicator who will fully ensure that Natalie and George Youris understand the terms of agreement and thereafter get their response regarding this matter. Foremost, it is essential for the involved parties to be advised appropriately concerning the nature of the transaction that is about to take place and the various variables involved. For instance, it is appropriate to advice the parties involved to seek independent representation in order for their interests to be safeguarded. Moreover, there is need for Peter and his family to address the aspects involved in this transaction legally rather than in a family circle. This is mainly because the issues at hand are quite intricate and may require legal intervention. It is necessary that the agreements between Peter, Renee, Natalie and George Youris should be endorsed in a legally binding contract. The contract should give provisions that will establish the returns that Renee is entitled to as an investor in the bakery business. Furthermore, the provisions in the contract should provide the terms of loan settlement and the returns that Peter’s grandparents are entitled to. In addition, the contract should have stipulations that indicate the measures that should be taken following the collapse of the bakery business (Aldrich, 1999). Secondly, as the solicitor responsible for this case, it will be necessary to establish the legitimacy of the vendor company, its solicitors and the terms of the standard contract. This crucial since it will safe guard the interests of the client and ensure that they are not swindled. It is essential to scrupulously go through the terms and conditions of the contract, thereafter contact the involved vendor company and solicitor for clarifications in regards to the exchange of contract. Reference Aldrich, J. (1999). Commercial law: a practical manual covering the fundamental principles of law as applied to business in general, with special reference to common law affecting the more usual commercial transactions. New York: American School of Correspondence. Corigiliano, J. (2002). Principles of commercial real estates: Mortgage Servicing. New York: Dearborn Publishers Curlander, M. (2000). Theory and Practice of estate accounting for accountants lawyers, executors, administrators and trustees. California: University of California Press. Fillmore, W& Kyle, R. (2002). Modern Real Estate Practice. New York: Dearborn Publishers. Read More