Word count: 1539
Our Ref:
20 August 2012
Client Name:
Client Address:
By Email:
Letter of Advice
Dear Client,
Thank you for seeking advices for about the establishment of a new business venture. Based on your statement of relevant circumstances and national laws we would like to comment as follows.
1. Instruction: The sole responsibility we undertake is to answer your question at the aspect of law. We assume that all relevant circumstances are truly mentioned by you and remain unchanged until this letter is being provided. We will not promise any rate of return and it is your responsibility to investigate the financial and commercial aspect of this business venture. We strongly suggest that you review relevant financial statements and judge the expected profit, risk or loss of the business carefully through a properly qualified and experienced accountant before you proceed with this business. We assume that you have completed evaluation of the financial aspect of the business. Besides, you should read and understand this letter wholly.
2. Disclaimer:We will not be responsible when one of the following occurs: (1). Financial losses due to that you ignore the evaluation of financial and commercial aspects; (2). You provide untrue information; (3). Relevant circumstance changed before this letter is provided and can not be predicted reasonably; (4). Force majeure;
(5). Law or policy is changed; (6). You misunderstand our advice or you do not read the letter wholly; (7). Other unreasonably known or predicted circumstances occur. 3. Possible forms a business venture may adopt: You may organize your business
using different forms as follows: (1) individual: you may engage in your business individually. In this situation you do not need any contract prepared because you are the only person of the business venture; (2) Partnership: you associate with some other people or entities to form a partnership. Partnership is the relation between people carrying on a business in common with a view of profit, there is also an incorporated limited partnership. Members of a corporation, other than an incorporated limited partnership, can not form a partnership under the Partnership Act 1963. Partnership is one of legal structures which is usually organized by people for profits in commercial activities. A partnership will be recognized if it meets the following characteristics: contractual relationship is established among persons; each person has a unlimited agents for every other persons; each person owes rights and obligations to all others. A partnership is an association of partners. An agreement specifying the each partner’s contribution, rights and obligations, how to run the partnership and how to distribute its profit and so on must be prepared; (3) Trust: you may confer your property to others for your benefits, relevant rights and obligations must be specified in a contract; (4) Company: a company is an entity separate from its members and share holders, an association of articles of the company must be prepared. Company is recognized if some characteristics exist.
4. Definition of contract:Contract refers to agreement reached between and by parties thereto to establish, alter or terminate a legal relationship between them. A contract represents that the parties thereto have agreed something with each other. Contract in widest sense refers to an agreement reached by parties in accordance with all branches of law but in narrowest sense it only refers to contract of creditor’s rights. When draft a sample of contract, you should make its provisions fair as you can since the unfair provisions of rights and obligations of the parties may prevent you and the potential party reaching an agreement. There are some websites which some samples of contracts have been uploaded for your information, for example, /. You may refer to these resources when you prepare contracts. A sample of contract is made for frequent use for future; if you adopt a