Question

Assume you will start a new restaurant and rent space for your business in a strip mall or 3-story office building in Fairfax County, Virginia. Pick a name for your business consistent with your business form. You would like to start a Limited Liability Company (LLC). Assume you will be an owner and an employee of your business. Explain the following:

Draft one contract clause that relates to a specific area of your business (Between you and your landlord). Make sure your contract has all the necessary components for binding contracts. Explain:

(1) who is meant to sign this contract;

(2) what the importance of this contract is, and;

(3) what legal protections it gives your business.

Use your own words. Do not copy or paste from any source.

Answer 1

1) This is a contract between landlord and your business( Starbucks LLC). Since Starbucks LLC is an artificial person, it is distinct. Owner and company are different from eachother. So any person associated with company can sign the contract under company seal but not in his own name. So no person can sign the contract in his name on behalf of company since company is separate legal identity.

2) This contract is necessary to draw the terms & conditions that are binding on both I.e, landlord and company to protect their interests which leads to contract.

3) Since contracts are covered under Contract Act every person who entered into agreement are legally obliged to terms of contract. In case contract is not kept. The agrived person can claim damages from other person based on circumstances. If there is a penalty clause in contract he can also claim such amount of penalty stipulated in contract in case of default of other party to contract.