Management Agreements
Management agreements are entered into for a whole variety of reasons and there are different types of management agreements.
For example, property owners may enter into property or lease management agreement, companies with a fleet of cars may enter into a fleet management agreement, governments have environmental or wildlife management agreements, project managers have project or construction management agreement and financial advisors have wealth or investment management agreement. Management 
agreements are also associated with artists and sports people and you have specialist management companies managing all aspects of their income from contractual income to royalties and endorsements.
People also enter into management agreements for businesses. Instead of buying the business outright, some people may just like to manage it as they may not have sufficient funds. Other reasons for entering into management agreements are: that the owner does not wish to manage the business and have someone else operate it instead without selling it; the prospective purchaser may want to try operating the business before buying it; or the vendor and purchaser have signed an agreement for the sale of the business with a long settlement date but the purchaser wishes to start operating the business immediately.
Entering a Management Agreement
When entering into a management agreement for business, some of the things that need to be attended to are:
- details of the parties and their respective rights and obligations
- the objective of the management agreement and the activities to be undertaken by the manager
- the duration of the management agreement and any renewal of the agreement
- any fees to be paid to the business owner for allowing the manager to operate the business
- the remuneration of the manager and whether the manager will be entitled to the profit and also be responsible for any loss
- if the business includes a premises, whether the manager should have a license to occupy and responsibilities and obligations the manager under any lease
- responsibilities of the manager for repairs, maintenance and replacement of any equipment and chattel of the business
- payment for any existing stock and responsibilities to the suppliers for purchases of new stock
- responsibilities of the manager in respect of any continuing contracts entered into by the business, for example supply agreement
- responsibilities of the manager in respect of all other outgoings of the business including utility services
- the operation of the business by the manager and maintenance of proper banking and accounting records, and adherence to all relevant federal and state laws
- what happens upon termination of the management agreement and rights and obligations of the parties upon termination
- the disputes resolution mechanism for any dispute arising out of the agreement or operation of the business
- confidentiality of any information and any intellectual property including copyright and trade mark licensing issues
For drafting or reviewing a management agreement please consult LAC Lawyers Pty Ltd to assist you.
Management Agreements Articles
Business and Commercial Law - Partnerships - The traps and pitfalls
Date: January 07, 2011
Author(s): Scott Gray LPAB, Grad. Dip. Legal Practice
There are no strict legal requirements for the forming of a partnership other than when two or more persons carry on a business in common for profit, however given that this is a legal relationship it is advisable to create a written partnership agreement so that the terms of the relationship are clarified between the partners.
Business and Commercial Law - Defences to Directors Penalty Notices
Date: October 08, 2010
Author(s): LAC Lawyers
When faced with liquidity problems, it is common for companies not to make the relevant payments to the Commissioner of Taxation in regards to their tax obligations under Income Tax Assessment Act 1936.
Business and Commercial Law - Liability of Directors in Trustee Company's
Date: October 08, 2010
Author(s): LAC Lawyers
You have been appointed as a Director of a Corporate Trustee pursuant to a Deed of Trust and you are now concerned about your function and role in the Corporate Trustee with respect to the liabilities of the Corporate Trustee and your liabilities to the Trust if there are insufficient assets to meet the Trust’s liabilities.
Business & Commercial Law - Franchising Law - Franchising Code of Conduct
Date: May 29, 2009
Author(s): LAC Lawyers
Franchising in Australia is governed by the Franchising Code of Conduct (“FCC”). This piece of legislation was design to protect potential franchisees from unscrupulous franchisors and requires the franchisor to disclose certain information to the franchisee so as to...
What to expect when you call LAC Lawyers
Date: December 13, 2006
Author(s): LAC Lawyers
LAC Lawyers is a full service firm dedicated to the provision of superior legal services in Australia. Our aim is to provide unrivalled client satisfaction coupled with high quality service and advice. When you call LAC Lawyers our friendly reception staff will spend time with you to identify the area of law your enquiry relates to then pass you on to one of our qualified solicitor's who can help you.
Choosing a business structure - Which one is right for you?
Date: September 25, 2005
Author(s): LAC Lawyers
When starting out in business or changing the nature of your business you need to consider which method of operating the business is best for you.
Business and Commercial Law - Do’s and Don’ts for Small Businesses
Date: September 24, 2005
Author(s): LAC Lawyers
Starting a new business can be a daunting operation. A remarkably high percentage of small businesses fail within the first five years of operation. Sometimes that is because the business itself is not sound. However, on other occasions the problem lies in a lack of planning or an ignorance of the many legal requirements that must be met by the small business operator.