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Publication date: 10.05.2024
I am studying in the third year of the State University of Economics and Technology.I specialize in contractual, economic and corporate law, in particular, I provide consultations and write articles.
The enterprise management contract is an agreement between the owner or owners (participants) of the company, i.e. the founders of the management and the manager, which establishes the rights and obligations of the parties regarding the management and operation of the enterprise. This type of agreement can be useful for business owners who do not have sufficient skills or resources to effectively manage the business, or for those who wish to focus on other aspects of their business, allowing professional managers to run the business in their best interest.
The main elements of the partnership management agreement may include:
Parties to the contract: The owner (participant) of the enterprise and the management company (manager).
Subject of the contract: This describes the real estate subject to management as a single property complex.
Rights and obligations of the parties: Determination of the powers of the management company and the rights and obligations of the owner (participant) of the company.
Term of the contract and terms of termination: Establishing the term of the contract and the conditions under which it can be terminated early.
Remuneration: The Manager may receive remuneration for his services, which may be a fixed amount, a percentage of profits or other terms agreed upon by the parties.
Cost of services and terms of payment: Determination of the cost of services of the management company and terms of their payment.
Liability of the parties: Establishing the liability of the parties for non-fulfillment of the terms of the contract.
Other conditions: Additional conditions that may be included in the contract depending on the specific needs and circumstances of the parties.
Usually, the terms of the enterprise management contract may include restrictions on the management company's authority to dispose of real estate that is part of the property complex. This is done to protect the interests of the owners or members of the company and ensure effective management of the property complex.
Such restrictions may be established in order to preserve the value of the real estate, avoid unprofessional or unauthorized use of the property, as well as ensure compliance with the law and the terms of the contract.
The procedure for concluding an enterprise management contract may vary depending on specific circumstances, the type of enterprise, its size, and other factors. However, the main steps of the procedure may include the following:
Discussion of terms and obligations: First, the parties (enterprise owner and management company) discuss the terms and obligations that will be defined in the management agreement. This may include aspects such as the scope of services, terms, responsibilities of the parties, terms of payment and other important points.
Negotiating the contract: After discussing the terms of the contract, the parties agree on its text and establish terms that meet their needs and interests.
Inventory: Carrying out an inventory before entering into a management agreement can be a very important step, especially in the case of properties such as apartment buildings or commercial premises. The inventory allows for a detailed assessment of the facility's technical condition, its current condition, possible problems and repair needs, as well as to determine available resources and assets.
Preparation of documents: The parties can prepare a management contract based on the agreed terms.
Signing the contract: After preparing the contract, the parties sign it, certifying their agreement with the terms.
Start of management: After signing and, if necessary, registering the management agreement, the management company begins to perform management functions in accordance with the terms of the agreement.
Lawyer services when concluding contracts:
A lawyer consultation may be necessary at the stage of checking the counterparty through the use of registers, which will allow establishing the reputation of the person. The lawyer advice will also draft a contract that will meet not only the requirements of the law, but also the interests of the parties, and conduct a legal analysis of the situation.Therefore, legal services when concluding a contract are extremely important, because they will allow you to build strong contractual legal relations.
