Understanding Lease Renewal Agreements in Texas

What is a Lease Renewal Agreement?

A Lease renewal or Extension is an agreement by which both parties continue the prior relationship. The original contract (Lease) continues and the new date identifies the new expiration date of the amended Lease. So, there is no new contract. It’s simply an amendment (change) to the original Lease that states the old Lease will continue for three more years. The Lease becomes extended (amended) and the parties continue in like fashion. For example, if the original term was August 31, 2012 and you extended the Lease, it would continue to be in effect until August 31, 2015 . All the terms remain the same. The rent may increase or decrease. Utilities and other fees may adjust as well. It is very important in Texas that the Lease extension be in writing and signed for any period of time to be enforced. The Statute of Frauds requires that leases for a period longer than one year must be in writing. Even a month-to-month extension must be a written document. If the Lease is extended for a period of less than one year, such as a month or three month extension, the Statute of Frauds generally doesn’t apply.

Introduction to Mutual Termination Agreements: Essential Insights and Advantages

What is a Mutual Termination Agreement?

A mutual termination agreement is a legally binding accord between parties to partially or totally terminate an existing contract. Such a termination agreement cannot come into effect unless both parties decide to execute it by entering into a written accord. A mutual termination agreement can be drawn up outside of the jurisdiction of the courts or formally arranged through the judicial system.
A mutual termination agreement in a professional environment, for example, can enable employers to come to a resolution with an employee before the contract of employment has been previously terminated through statutory redundancy or dismissal . Once both parties mutually agree to a termination, the employee does not acquire the right to pursue the employer in the court and settle for damages. The arrangement also makes provision for additional benefits not awarded to employees of organisations that have dissolved their working engagements via statutory redundancy. These benefits can include relief from legal action pursued by the employer for occupational issues or breach of contract.

Can You Change Agreements After Mediation? An In-Depth Guide

What is a Mediation Agreement

Mediation agreements are the written records of the mediation process. They can take many forms, as they depend on the particular dispute, the parties, and the mediator. There is no prescribed format, but mediation agreements typically contain key information about the dispute, the parties to it, the agreement process, and the resulting resolution. Because there is no prescribed format, parties have vast leeway in how the terms are structured.
The purpose of a mediation agreement is to memorialize the terms of an agreement among the parties to a conflict achieved during the negotiation of the very dispute for which the mediation was convened . Mediation is a process that is perceived as less onerous than litigating a conflict in court before a judge or jury. Parties involved in mediation often credit the process with being less expensive than and more expeditious than a lawsuit, as well as providing each party with some control over the process and the result. Mediation has become a more popular mechanism for resolving conflict than litigation, and continues to gain traction as a primary tool for dispute resolution.

Exploring Discharge by Operation of Law: A Comprehensive Guide

What is Discharge by Operation of Law?

Discharge by operation of law is essentially when you no longer are bound by the terms of a contract due to the occurrence of a condition. This condition typically occurs when one party to the contract is no longer able to perform their contractual rights/responsibilities, without breaching the contract. Discharge by operation of law can occur in many ways, but it usually occurs when a party to a contract files for bankruptcy or upon the death of an individual involved in a contract. In the context of a divorce, discharge by operation of law occurs when a property settlement agreement becomes a final judgment from the court, in essence, converting what was once a contract into a legally enforceable judgment.
The import of discharge by operation of law is that the obligation in contract may no longer be enforced. For example, in HD Supply Facilities v. Green Environmental, [2011] NCCA 51, the North Carolina Court of Appeals held that a corporation’s payment obligations under the terms of the contract became unenforceable, when the buyer was dissolved. In the fact pattern of this case, HD Supply sold certain products to RWT. RWT then April 12, 2005, a Certificate of Dissolution was duly filed with the Arkansas Secretary of State and subsequently became effective. HD Supply made a claim against RWT for amounts owed, following which RWT sought DNAI’s indemnification. DNAI responded that RWT’s payment obligations were "discharged by operation of law" when RWT was dissolved and that DNAI had no obligation to indemnify RWT. Following a trial, the court held that the company’s dissolution extinguished the company’s debts .
Evidence submitted by the parties established that on April 11, 2005, RWT was voluntarily dissolved by its members pursuant to Ark.Code Ann.§ 4-27-1401. The next day, RWT filed a Certificate of Cancellation with the Secretary of State reflecting RWT’s decision to voluntarily dissolve. Under Arkansas law, a dissolved limited liability company continues its existence until August 15th of the fifth year following the filing of its certificate of cancellation or August 15th of the year the company filed on, whichever later, to wind up its business affairs. Ark.Code Ann.§ 4-27-1406; Ark.Code Ann.§ 4-27-804. This termination date is known as the LLC’s "winding up period." Ark.Code Ann.§ 4-27-801 (6). Therefore, the endorsement states that if the certificate of cancellation was filed on April 12, 2005, the LLC would have had six years, or until April 12, 2011, to wind up affairs, cure all outstanding obligations and legally terminate its existence. Thus, the court found that the obligation to pay any debts does not survive or bind the LLC after the April 12, 2011 termination date.
In the context of divorce, discharge by operation of law applies to the circumstances where the property settlement agreement becomes a final agreement and divorce decree which is then incorporated into the final decree of divorce. In the context of a final judgment, the fact that a party to a contract has been discharged from or tends to have been discharged from the obligations contained therein means that the court will excuse that party from performance of the obligation in question. However, there is an important caveat in that the contract must still be within the statute of limitations. If it is not, the discharge by operation of law may not be sufficient.

Louisiana Legal Guardianship Explained: An In-Depth Overview

What Does Legal Guardianship Mean?

Understanding Legal Guardianship in Louisiana: A Comprehensive Guide
Legal guardianship is a legal arrangement in which an individual is appointed by a court to care for the personal and property interests of another person, known as the ward. In Louisiana, a legal guardian is given authority over the day-to-day affairs of the ward, typically judged to be necessary and advantageous due to the ward’s incapacity or minority. Although legal guardianship can be temporary, defined by a duration set by the court, it is often a long-term or even permanent solution to providing the necessary oversight and management of personal and financial matters.
The role and responsibilities of a legal guardian are distinct from other contexts where a person is responsible for the care of another . For example, while a legal guardian may have the legal authority to make decisions on behalf of their ward, a custodian or a foster parent does not have the same legal restrictions or privileges as a legal guardian. Temporary guardianship in Louisiana is often granted to accommodate a situation that necessitates guardianship without requiring the more permanent long-term arrangement of a full legal guardianship. Institutionalization is also distinct from guardianship.
By becoming a legal guardian, the guardian is expected to act in the best interests of the ward—and they may be held legally accountable for safeguarding the ward’s wellbeing. Thus, while the requirements and duration of the guardianship are overseen by the court, the actions taken by the legal guardian can be legally scrutinized.

Essential Components of an Owner Operator Lease Agreement for Trucking Companies

Owner Operator Agreements Explained

Owner operator agreements are of particular importance in the trucking industry. In fact, there are many trucking companies that could not survive the loss of their owner operators. Therefore, it is easy to see how these agreements have become valuable commodities themselves.
The most simplistic way to think of owner operator agreements is as a contract between the trucking company and driver stating that the driver is an independent contractor who is not an employee. While many owner operators may view their status as an independent contractor as a benefit of the position, it is important for a trucking company to abide by requirements of the IRS on proper classification of these workers . For example, according to the IRS website, owners/operators must exercise certain financial control over the business of drivers to be considered independent contractors. If the IRS were to determine that a driver is an employee instead of an independent contractor, an audit would be likely. And, that audit would certainly not be in the best interest of the trucking company.
Trucking companies should be sure to consult with experts to ensure that their owner operator agreement is in full compliance with IRS requirements. Not only would a negative finding from an audit lead to penalties from the IRS, it could also be extremely costly.

Prenuptial Agreements in Oregon: What You Need to Know

What is a Prenuptial Agreement?

When referring to prenuptial agreements, they are also referred to as premarital agreements or antenuptial agreements. It is an agreement that allows the parties to provide for the division of property and other rights and obligations of each party in the event of a divorce.
The Oregon definition of a prenuptial agreement is a written contract entered before a future marriage. The agreement signed by both parties becomes effective upon the anticipated marriage . As with most contracts, there are many issues each party should consider when entering into a prenuptial agreement. Initially, both parties should have counsel to review the agreement. Although this is not required by law, it will protect each party in the event of a divorce and will help prevent later claims of undue influence and lack of understanding.
An important consideration: the agreement must be signed voluntarily.

South Carolina Gaming Laws: What You Should Know

A Look at South Carolina Gambling Laws

The legal framework governing gambling in South Carolina is highly nuanced and restrictive. From the birth of the nation to today, many of our colonies, state legislatures, and even the Congress of the United States have viewed gaming with skepticism. In fact, the Colonial Assemblies and the Continental Congresses prohibited card playing and gambling. In 1789, the Court for Over and Terminer in Charleston sentenced a soldier to 39 lashes for gaming and playing cards and for carrying a "two-penny halfmoon." This combination of historical and social pressures against gambling led to the enactment of criminal statutes throughout the United States, and more specifically, in South Carolina. The prohibition of gambling in South Carolina is still evident in the overall structure of the gambling laws that are currently in effect. In South Carolina, "[g]ambling is illegal except and excepted defined by statute." S.C. Code. Ann. § 16-19-305. To help illustrate this nuance, it is helpful to first examine the four broad categories of gambling laws: (i) criminal laws; (ii) public user laws; (iii) administrative law; and (iv) common law and case law. Criminal law relates to gambling in three type of situations: (i) unlawful gambling; (ii) unlawful bookmaking; and (iii) promotion of gambling. Criminal gambling laws are found in Title 16, Chapter 19 of the South Carolina Code of Laws and Title 58, Chapter 23 of the South Carolina Code of Laws. To get an overview of the criminal laws pertaining to unlawful gambling, unlawful bookmaking, and the promotion of gambling, see §16-19-305 of the South Carolina Code of Laws . The public user laws pertain to gaming on college and professional sports, gaming on unlicensed auto races (i.e., not certified as a "messenger race" by the South Carolina Department of Revenue), and the state-run lottery. These public user laws are codified in Title 33, § 32-200 of the South Carolina Code of Laws. "Administrative law" refers to rules and regulations enacted by the South Carolina Legislature, such as the South Carolina Bingo Game Enabling Act of 1997, as well as legislative guidelines and directives for the Department of Revenue, such as the Regulation 49-100, the Bingo Regulations. The Bingo Regulation governs the use of Bingo cards and all activities concerning Bingo games and allows certain charities to apply for and conduct "limited lottery" games. The Bingo Board is authorized to issue such licenses. Traditionally, lotteries have been held by the states to raise revenue for educational and other public facilities. The practice of conducting lotteries in South Carolina dates back to 1696 and reflects both a social and moral concern for the good of the community. The South Carolina Lottery Act was enacted in 2001 to create a lottery to assist in the funding of education. "Common law and case law" pertains to gaming or betting by private individuals or between individuals, and includes loss limits and bet limits, but excludes wagering on sporting events by individuals. It is important to note that other than an application of common law and case law, the prohibition against gambling is absolute because the games have no established exception from the use of Note (4) above.

Sale Agreements Hold An Underlying Possession Clause

What is the Possession Clause?

We have noted before on this blog that real estate lawyers can be somewhat obsessed with the details when it comes to certain forms and documents. So if we spend more time than you would like on the minutiae of a Revised Agreement of Purchase and Sale, you’ll just have to humour us. We promise we’ll buy you lunch.
Today’s topic is the possession clause. As you might expect, the possession clause allows the purchaser to take possession of the property (subject to the vendors continuing right to maintain possession until completion of the transaction). As with any standard provision it can be easily overlooked, but like the rest of the Agreement of Purchase and Sale, it does have its own nuances and peculiarities.
One of these nuances, and one that we see quite often, is that the possession clause may not properly reflect other terms in the Agreement. For example, the possession clause may require that the purchaser make a payment for the keys to the home on the date specified for closing. However, if closing lands on a weekday, and the purchaser takes occupancy of the home before closing, the possession clause should allow payment for the keys upon taking possession. If it does not, this creates the opportunity for a disparity between the date upon which the purchaser actually delivers funds for the keys, and the date set out in the possession clause . This may cause problems if the Agreement contains a provision related to a penalty for failing to pay the balance of the purchase price on the closing date.
Additionally, possession versus closing may be defined differently in a re-sale agreement versus an agreement for the purchase and sale of a new build. In a new build, for example, the purchaser may take occupancy before closing. As a result the possession date for the purchaser could be quite different from closing and the payment date for the key, which requires careful drafting of the possession clause. For resale transactions, the definition of "closing" typically encompasses the idea of "going into possession." As such, a possession clause may be optional, and often omitted from a resale transaction. Purchasers taking possession the day before closing on a re-sale transaction are then holders of keys beforehand; in other words, they would not technically be receiving the keys, as there are none to receive at that point.
While it may be a standard provision, the possession clause sets out key details about the transaction. It should be viewed as a protection for the purchaser, rather than an inconvenience. Remember to pour a stout drink, sharpen your pencil, and read your way through that sale agreement. We promise it will all make sense in the end, and property transfers smoothly to the new homeowner.

Understanding New Jersey Property Settlement Agreements: An In-Depth Insider’s Guide

What is a Property Settlement Agreement?

Property Settlement Agreements are commonly known as PSA’s. Simply stated, a "PSA" is a written contract made between divorcing spouses that settles all or some of their claims arising out of their marriage, including any equitable distribution issues, alimony, child custody, parenting time, medical and educational expenses for the children, and child support. Family Judges, Clerks and Attorney’s frequently refer to PSA’s when they refer to the people "settling their cases". This means that the litigants reached an agreement that resolves all of their disputed issues without the need to go to Court for a trial.
In New Jersey, every divorce must involve a settlement or a trial. When a settlement is not reached, the Judge is obligated to either set a trial date or order the parties to go to mandatory economic mediation.
With the implementation of the Early Settlement Panel, many litigants are not only required to go to this mediation, but there are actually court ordered conferences where Settlement Officers must try to settle the case. If the case does not settle at a Settlement Conflict Resolution Conference, the litigation must result in a trial. There are also cases where the parties are not able to reach a resolution and their case ends up on the economic mediation track .
Practically speaking, so many litigants settle their divorce cases today because it is more cost effective. In addition, litigants have more control over the family property after divorce when they settle their case than when they leave it in the hands of the Court. By entering into a PSA, the parties can meet their needs. It is a smart business decision to settle, and by doing so, it will avoid years of litigation including a costly trial.
Once a PSA is entered by the parties, depending on what issues they resolved, it can range in length from one page to hundreds of pages. When it is signed by the parties, notarized, and then submitted to the court for approval the Judge will usually sign it "on the papers" after reviewing it and determining that it is fair and equitable, and that both parties fully and free entered into it. So long as at least one party is a resident of the State of New Jersey for not less than one year before filing for the divorce, the Judge will have jurisdiction to have personal jurisdiction over the litigants in the Case Information Statement, and the PSA. The Court Clerk will then enter the Judgment of Divorce which finalizes the divorce and incorporates the PSA by reference.
The PSA is a very powerful document. Once it is signed, the parties are no longer able to return to the court to litigate the issues within it without very limited circumstances to do so.