Employee Handbooks – Why Employees Need to Sign Acknowledgement Forms
By Herb Fineburg, Offit Kurman
Recently, it was reported that a paint supplier who sued the Trump National Doral resort and spa for an unpaid bill obtained a judgment against the resort of USD 32,000 for paint plus a staggering USD 390,000 in collection legal fees. In the US, each party pays their own legal fees in commercial litigation unless the contract provides otherwise. Even the Trump organisation did not notice or object to the legal fees claim in the supplier’s contract or credit application.
In order to improve the collection of your accounts receivable, vendors should take care when using a sales and/or credit agreement with certain minimum beneficial terms. The following are three material provisions that will help ensure that your customer is motivated to pay their account with you in a timely manner:
- include the right to recover your costs of collection including legal fees, court costs and interest, regardless of whether you file suit;
- establish that the governing jurisdiction of any dispute will be designated to a court in the county where you are located and/or otherwise convenient for you;
- include a personal guarantee by the buyer’s owners.
Most buyers do not consider these provisions objectionable if they even review your sales and/or credit agreement. With these provisions in place, the buyer is more motivated to pay. Moreover, if the buyer is in financial difficulty, the personal guarantee greatly increases the possibility that you will be paid before any other creditors for which the owner has no personal guarantee over. There are also other terms, typically in a sales and/or credit agreement, which can form part of your agreement with the buyer.
Herb FineburgOffit Kurman, Washington DC, USA
T: +1 267 338 1376
Offit Kurman is a dynamic full-service law firm. As trusted legal advisors, they help clients to maximise and protect their business value and individual wealth. They strive to maintain clients’ trust in every interaction, furthering their objectives and helping them to achieve their goals in an efficient manner.
Herb Fineburg's substantial knowledge of tax law provides clients with strategic and costsaving benefits, in connection with commercial transactions, taxation and wills, trusts and estates matters. Known for his ability to resolve complicated matters effectively, Mr Fineburg has assisted businesses and individuals with the organisation of their finances, business and real estate affairs, and the structure of their assets.
Published: Winter 2017 l Photo: Siegfried Schnepf - Fotolia.com