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We have been told that the interest rate is the percentage of money that the lender charges the borrower for providing the funds that he requests. However, there are different ways of calculating these rates and many other costs and fees that are not always included in the rate. If you want to calculate the true cost of a particular financial product there are some tips that you might find useful.

There are variables that can modify the results on these calculations only slightly and others that have a huge incidence: For instance, certain rates informed are only offered to those with a perfect credit, if your credit is not that good you need to expect another one. There are also additional costs that need to be added like insurance and administrative fees that can also depend on your score. The APR can be a great tool for comparison but you need to pay attention to the above factors too.

The APR For Financial Product Comparisons

The APR is said to include all the costs of financing so people can compare and decide which financial product best suits their needs. However, truth is that not all costs and fees are included. There are certain charges like special insurance, administrative costs, etc. that can be excluded by lending institutions from the calculation of the APR and added later in the fine print of the loan contract.

Thus, it is always a good idea to request the lender a copy of all the documentation that would be signed prior to signing anything. That way, you can analyze it calmly at home and see what all the fees included will cost you on a monthly basis (some insurance fees are debited twice a year and some issuing costs or administrative costs are debited once a year). So, though the APR is an excellent tool for comparisons, do not neglect the rests of the factors that can alter the final cost.

The Credit Score Issue

Many people believe that those promotions that appear on newspapers, magazines, on the net and on many other places are for the average consumer. However, most financial institutions feature these promotions knowing that they will attract customers that will not read the fine print of the offer that states in other words that in order to qualify for those promotional rates or conditions you need to have a perfect credit.

Yes, Perfect Credit; it is usually not enough to have an average credit score with maybe a few late payments on your history. In order for you to obtain those financial products with such advantageous terms your credit history needs to be impeccable. Thus, when you contact the lender you will find out that you do not qualify and that you need to agree to other loan, line of credit or credit card with different conditions if you want to obtain finance. Lenders count on this; the offer is only to attract customers. Few will qualify and the money they lose with them will be compensated by the higher rates they will charge to others. Thus, if you want to know the real cost of a product, you have to request quotes and read the fine print closely.

By: Devora Witts

Technorati Tags: investment fund, investment managemen, mutual funds investing, small business finance

Anyone who works for an employer for a regular wage or salary automatically has a contract of employment, regardless of whether it is written or not. The majority of employees work under open-ended contracts of employment. In other words, the contract continues until such time as the employer or employee ends it.

Many other employees however, work under fixed-term or specified-purpose contracts which are contracts which end on a specified date or when a specific task is completed. The contract of employment will include some or all of the following elements (regardless of whether the employer and employee have specified them or not):

The terms that the courts say are in every contract of employment. Examples include the duty of every employer to provide a safe workplace and the duty of every employee to carry out the job to the best of his/her ability. This part of the contract is occasionally referred to as “common law”.

Terms that must be part of the contract as a result of laws passed. Examples include the right to take maternity leave. Such terms are part of the contract of employment even if the employer and employee do not specifically include them and replace any agreement between the employer and employee not to apply the particular law. So, the statutory right to take maternity leave overrides any agreement between the employer and employee that the employee will not take maternity leave.

Terms and conditions states must be in every contract, for example, the right of an employee to join a trade union.

Collective agreements

Joint Labor Committee Regulations

In addition, custom and practice in a particular workplace may form part of a contract. An example would be a particular level of overtime pay for employees.

In the case of these items instead of giving each employee the details in writing, the employer may refer an employee to other documents, for example, a pension scheme booklet or a collective agreement, provided that the employee has easy access to such documents.

The statement of terms must indicate the reference period being used by the employer for the purposes of the calculation of the employee’s entitlements under the Minimum Wage Act, 2000. (Under that Act the employer may calculate the employee’s minimum wage entitlement over a reference period that is no less than one week and no greater than one month).

The statement of terms must also inform the employee that he/she has the right to ask the employer for a written statement of his/her average hourly rate of pay for any reference period (except the current reference period) in the 12 months prior to the date of the employee’s request.

Note. Specific provisions in contract of employment
In recent times, some employers are adding in specific provisions in contract of employment that limit the ability of employees to work in a certain sector, with certain suppliers, clients, for a period following termination of employment. (For example, it may specifically state that the employee cannot work in a certain sector, with or for suppliers or clients of the former employer, etc.). There is nothing in employment law in that strictly forbids this, but there is no provision in employment law that allows this either.

Essentially, this is an issue of contract law - that is, the contract of employment signed and agreed between the employer and employee. If you have any concerns about this issue, you are strongly advised to seek legal advice from a competent legal professional in advance of signing this contract of employment. However, even if the contract of employment is signed, you are always free to seek such legal advice. Attorney fees can vary widely so shop around and obtain some quotes for legal advice before you proceed.

Note. Probationary period
The contract can include a probationary period and can allow for this period to be extended. The Unfair Dismissals Acts will not apply to the dismissal of an employee during a period at the beginning of employment when he/she is on probation or undergoing training provided that:

* the contract of employment is in writing
* the duration of probation or training is one year or less and is specified in the contract.

The above exclusion from the Acts will not apply if the dismissal results from trade union membership or activity, pregnancy related matters, or entitlements under the maternity protection, parental leave, adoptive leave and career’s leave legislation.

Changes to your contract of employment.

Changes to your contract of employment can occur due to a change in the law, but otherwise, changes must be agreed between your employer and yourself. The requirement for both the employer’s and the employee’s consent to changes in the terms of the contract is part of contract law.

From the above information you will see that the contract of employment is a very important document to have. Whenever you get hired, ensure that your new employer offers you this kind of security. Be cautious of employers who don’t give contract of employment.

Author: Abhishek Agarwal 

Technorati Tags: contract employee, employment rights, work employment

Buying a new home is always the dream of every one. You opt for mortgage loans when you don’t have the full cash for buying the home. There are a number of mortgage lenders to offer excellent service to satisfy all your mortgage needs. Special mortgage programs are also offered for assisting home buyers.

If you are familiar with at least some of the mortgage loan and contract terminologies, that can significantly aid your home buying process. If you need a mortgage to buy a new home, first you need to know about the different types of Mortgage Loans available. Conventional and government loans are the two main categories of mortgage programs.

Each mortgage programs can be classified as fixed rate loans, adjustable rate loans and hybrid loans. Since a variety of different loan programs are available, it is important to choose the exact type of loan that will best suit your needs based on the amount of monthly payment you can afford. You can deal with all your mortgage needs effectively using the following tips in order to buy your new dream home.

If you plan for getting mortgage for buying a new home, you must first order your credit report from credit reporting agencies and check it for errors. Then you must track the mortgage market and interest rate fluctuations. When the mortgage market and interest rate fluctuations are favorable, choose a mortgage plan that best suits your needs based on the terms of the mortgage such as the type of the mortgage, interest rate, prepayment penalties, high or low down-payment, lock-in period, payment schedule, mortgage insurance requirements, and many other features related to mortgage needs.

You must determine the type of mortgage you want to obtain based on also the total price of your new home and the down payment that fits your budget. Once you choose a certain mortgage program, you can start comparing interest rates of the same mortgage program provided by different lenders. Then you can decide the best mortgage lender for your situation.

Once you have chosen a certain mortgage lender, ask the mortgage lender to specify the essential documents that are required to provide the approval process. Make sure whether the mortgage loan application and the lock-in fees are refundable in case if your mortgage loan application gets rejected. Once your loan application gets sanctioned, you can continue with the further process of getting your loan amount for buying your home.

Once you get the Loan Approval Certificate, you must give details of the home you wish to buy and pay the booking deposit to your mortgage provider in order to get a Formal Loan Offer. You must thoroughly go through the loan offer along with your broker & solicitor. Once all the conditions given in the loan offer are satisfied, you have to sign contracts after 3-4 weeks. Finally your loan amount will be released from the mortgage provider or lender to your solicitor.

Mortgages are always available for all financial situations. You can choose the one that best fits your needs just by a little shopping and research. You can also get enough information from mortgage agents or brokers. The builder of the home you are willing to buy may also be able to recommend some mortgage companies.

By: Sharon Samraj

Technorati Tags: buying a home, mortgage calculator, mortgage leads, mortgage rates

It is an unfortunate truth that many people are facing foreclosure. While some may see no options available, a home loan modification is a very real possibility for many. This process is designed to change some of the terms in your home loan contract in order to reduce the monthly mortgage payment.

If this process is done properly it can help people who have been unable to make their monthly mortgage payments obtain a new payment that fits within their budget. These changes are possible because the bank does not want to deal with a foreclosure. If the homeowner defaults on the mortgage, the bank stands to lose money in the process.

Here are 5 steps that lead you through the mortgage modification process:

1. Discovery.

Understand the basic process involved with a home loan modification. Although the process seems difficult to many people, learning a little about the process lets a homeowner determine whether modifying their home loan is right for their situation. Understanding the process is valuable whether you handle the process yourself or hire a third party.

2. Decision.

If a mortgage modification is something you want to pursue, decide whether you are going to do it yourself or hire someone to help. If you do it yourself, continue learning about the process and consider a book or other resource to better understand how to work with your lender. If you decide to hire a company or attorney to help with the process, find a reputable person or company and ask plenty of questions to be sure they are the right “fit” for your situation.

3. Letter.

An important document for anyone interested in a loan modification is a hardship letter. This letter is typically required by all lenders. The letter should describe your financial hardship and why you need a change in the terms of your mortgage. If you are using a company or attorney, they can help you with this letter. If you are handling the procedure yourself, find a good resource that explains how to write this letter.

4. Communication.

Stay in contact with your lender (if you are handling the home loan modification yourself) or with the company/attorney you hired for assistance. Be sure you understand what documents are needed and provide them in a timely manner. Also, communicate regularly and be certain that you understand the next step in the process and what your task is for that step.

5. Patience.

The process can be frustrating and time consuming. Be patient and realize that lenders are handling many home loan modification requests, with new requests arriving daily. Be polite, even if the process seems to be moving slowly.

Following these steps will likely improve the overall process and increase your chances of receiving your desired mortgage modification.

By: Mark Winfield

Technorati Tags: mortgage lenders, mortgage rates, mortgages, wholesale mortgage

A rental contract is a written or oral agreement between a landlord and a renter or tenant. A rental contract creates the legal relationship between the two parties. A renter has to abide by the rules specified in the agreement, without being in any way harmful to the premises or the neighbors, as per most of the rental contracts. The terms and conditions of a rental contract are subject to the local jurisdictions, statutes, and ordinances.

If you are about to sign a rental agreement, the first thing to do would be to go through the agreement very carefully. Remember that it is a legal document and you cannot take it lightly. It is always preferable that you interpret your rental contract with the help of a lawyer, who may be able to understand it better.

Another thing with rental contract is that you should never enter into an oral agreement. This can cause problems later on, if one party were to interpret the agreement differently from the other. It is always advisable to have rental agreement is in writing.

Generally speaking, rental contracts fall under two categories; fixed term rental contracts and periodic or month to month agreements, with each having its own advantages.

Most rental agreements are of the fixed type. They allow the renter to occupy the premise for a specific period of time. They usually include sub clauses with rules governing what should be done if the renter had to vacate the premises before the expiry of the contract.

Periodic agreement too has its own advantages, one of them being that it is flexible. A renter can, say for instance, terminate the agreement at any point of time when he desires. Landlords too can do the same and could even raise the rent as and when they wish. Whether you are a landlord or a renter looking for shelter, it is important that you are armed with at least the basics of rental contracts, before you sign an agreement. You can find great information on rental contracts by visiting online resources dedicated to the subject.

Author: Jimmy Sturo 

Technorati Tags: contracts forms, rental property, sales contracts

Financial contract in America has undergone a revolutionary change with the introduction of amendments in Bankruptcy code and some other statutes. The aim was that the financial risk of the parties concerned is minimized so that bankruptcy of one of the parties does not adversely affect the other. The amendments vest certain powers to the bankruptcy trustee or the debtor.

Transfers and payments that were made by the bankrupt party immediately before such bankruptcy is now recoverable. The trustee may also reject ongoing contracts. Simultaneously, exercise of contractual liquidation and termination rights against the debtor is now prohibited.

Financial contract in United States can be of various types. One is the repurchase contract that now covers mortgage related securities and loans. Another is securities contract that now conforms to the definition provided by FDIA. Similarly, there are commodity contract, forward contract, and swap agreements.

A financial contract in America has various aspects. One may look at the origins of such contract, legally of course. There are the creditor’s rights, property rights, legalities, law and financial aspects. A few issues like legal protection of parties, especially the creditors and maturity of the contract are of prime importance.

A new aspect of the current legislations relating to financial contract is that the inclusion of a non-qualifying agreement will not be a bar for loss of benefits. Similarly and transaction under a master agreement is not a bar to the loss of benefits on other parts of the agreement. Thus the concern of transacting parties relating to multiple derivative transactions under one master agreement is now over.

The powers of the trustee is however limited in certain respect. This has been done to avoid total injustice to debtor. Therefore, the code also protects the financial rights of certain financial participants in terms of agreements, forward contracts and commodity contracts and the rights to net payment obligations are now protected under the code.

With the coming into force of the code there have been some marked changes in the field of swap agreements. Its effect is marked in those fields relating to return, debt, credit, commodity index, equity index etc. There is the flexibility now to cover new products under the umbrella.

Current legislations have added a new concept of financial participants too. The definition now embraces all clearing organizations having agreements and now the agreements will include the gross value in terms of the principal value outstanding. They will be declared as protected parties and this gives them rights of enforcing their financial contracts reducing their market risks.

The new legislations on financial contracts, on the one hand puts a limitation on automatic stay and right to setoff. On the other hand it permits set off against cash or securities etc held or under the control of a market participant who is protected by the contract. This right to set off can now be enforced against the transfer of property too.

Current laws also permit execution of right to terminate, and met across contracts in respect of each individual contract, that is covered under the master contract. The definitions of the term contractual rights have been expanded to give protection to a national clearing organisation. Therefore, now they are protected under section 561 of the new Act.

A country’s legal organisations and systems are always prominent in shaping private financial contracts. A creditor’s ability to take collateral is the vital factor in a financial contract since they ensure better bank support, longer maturity period, and lesser interest rates. Ultimately the capability of a creditor to take collaterals also minimises the risks involved in the financial contracts.

Another type of financial contract, at times known as Annuity in United States, is virtually an insurance contract. Such a financial contract comes into being when 1ff8 an individual takes out a policy from that insurance company. The company may invest the fund and distribute back a percentage to the owner in several ways, either as a lump sum or on a periodical payment basis.

Characteristics of any annuity contract are that there is an option for the client for a guaranteed distribution of income until the death of the annuity beneficiary. Since annuity provides a source of income that will never run out, retirees find the contract extremely useful. The annuity contract or financial contract is therefore like a pension plan.

Annuity contract in United States are regulated under the Internal Revenue Code implemented by individual states. Such annuities combine the features of life insurance on one hand and investment products on the other. However, annuity contracts can be sold only by the insurance companies under the federal laws.

A question arises on the remedies available to the creditor to ensure repayment when their rights are weak. A creditor can impose higher interest rate simultaneously reducing the maturity period in such case. Loan ownership is more diffuse in countries where the rights of the creditor are weak and legal formalism is greater.

A financial contract often involves Coasian bargaining that is related to interest rates. Where the risk of government expropriation is high the financial agencies can think of suitable private contracts. Use of collateral and maturity terms may be two of the important tools for the financial institution in such case.

The Coasian theory states that financial organisations will always find out clever ways to offset the weakness of the system and may also seek for extra protective measures beyond what is laid down in the ordinary financial contracts. However such extra protective measures shall always be subject to the costs and enforcement difficulties involved, which may restrict its use and operations. Whatever may be the case, difference in contractual environment is most likely to affect the formation, features, and outcome of a financial contract.

Loans with greater formalism are of course more secure but will have longer periods of maturity. Another affect of greater formalism is that the terms laid down for rated firms are better than those laid down for unrated firms. Major part of unrated loan is provided by domestic banks since foreign banks do not relish it and they also look forward to the courts to assist them in case of defaulted loans.

Micro level aspects relating to a financial contract involves the grass root level components like the borrower and lender basically. The second level belongs to the State that includes the creditor’s rights, borrower’s rights and other correlated legal stipulations. State level conditions also include the economic system of the country and the legal forum functionaries like the courts who are the last resort in case of putting on right track a defaulter.

Financial contract often involves venture capital, a term associated with banks only in older days but that has now acquired a much broader perspective. In this type of financial contract, both participants invest till the firm is firmly entrenched in the business world. The techniques that are involved here include restrictive covenants, redemption rights, and staged investments and the most significant characteristics of such a financial contract is the limited time period allowed.

Financial contract has many aspects that require attention of the parties involved in such a contract. There are much more than what has been described above. However, these are some of the basic aspects of a financial contract in United States that we have discussed in previous paragraphs.

Author: Prabir Sen 

Technorati Tags: employment contract, sales contract, securities contract

A legal contract can take many different types of forms. Not all legal contracts are written. Some legal contracts can be a simple matter of a verbal promise of something in exchange for something else. Statutes differ, but as a general rule, any contract involving remunerations of $500 or more requires documentation in order to be valid. Verbal contracts are made on the basis of ethics and tradition.

Written or printed (or word-processed) legal contracts can be quite simple or extremely complex. In its simplest form, a legal contract can be a sentence or two, with two or more parties signing the document. The contract constitutes a legal basis upon which any party can sue the other in case of a failure to comply with the terms of the contract. This failure to comply is called “breach of contract”.

The more complex legal contracts can be comprised of one page, many pages, or dozens upon dozens of pages. They can take the form of employment contracts, in which an employer and an employee or contractor agree on the job description and remuneration, or business contracts, which refer to contracts between two or more businesses. Business contracts can become very complex, including terms, conditions, specifically stated remuneration terms and deadlines, expiration dates, and so on.

Lawyers are often present during the signing of a contract. Sometimes a “notary public” is used. A notary public is someone who witnesses and validates written contracts, then physically places a seal of approval on the finished contract deal.

Author: Jimmy Sturo

Technorati Tags: business contracts, employment contract, general contracts

This sample music compilation Agreement should be used when a compilation CD is being created as part of a community project. It is drafted with unsigned artists in mind who do not have a publisher or a recording company to negotiate on their behalf.

This sample contract agreement allows both the organization compiling the CD and the artist to sell and make money from the compilation CD, but to some certain conditions.

If the musician has a music publisher or is signed to a record label, you may need to contact that label company or publisher to obtain the rights to reproduce the musical work, sound recording and lyrics onto a CD compilation. In many cases labels and publishers will have their own sample contract agreements which they will give for you to use.

If the organization producing the CD compilation is also assisting the artists produce the original recording of the music and lyrics, the sample contract will need additional terms to be included and agreed upon.

This sample contract agreement includes the most common terms, which the artist and organization should agree on. Think carefully about each item and add, change or delete clauses to your purposes. It is recommended that you obtain legal advice on your draft prior to sending it to the other party if possible.

By: Veronica Lane

Technorati Tags: business contract, management contracts, sales contract

Choosing a contractor to build your home is vital stride in making your dream home a reality. There are a lot of factors to consider when making your choice and a few missteps that can be avoided with a little research.

Step#1

Knowing what your contractor will do for you.

When construction commences your contractor will manage, arrange and handle all aspects of the process. Working off your floor plans they first provide you with pricing, obtained from their various trades, and then acquire any permits & engineering documents necessary for construction in your local area. They arrange for materials to be delivered to your site and manage all the various trades’ people (excavation, carpenters, electricians, plumbers, drywall installers, etc.) that will work on your home so that they arrive when needed and conclude their jobs proficiently and according to the schedule needed to meet the possession date you have set. Quite the responsibility when you think about it, but many contractors can manage a large number of projects along with yours and never see a single hiccup in the process.

Step #2:

Finding the Contractor who is right for you.

While these days you certainly CAN find a contractor on the web or in your phone book, a better place to start is often with friends, family or neighbors; their personal experiences with contractors can be invaluable in the selection process. Did the contractor they used live up to his promises and deliver what was agreed to? Were there problems with the construction and how they were resolved? Most importantly was the contractor honest with them about his schedule and his costs? Often you can find just the right person simply by asking around.

If you don’t have that personal reference then checking with your provincial or local home builders’ associations is often a good place to start. These associations register builders and hold them to a code of conduct, while ensuring that they have available to them resources such as training for building code changes and information on new products and their applications.

Your local chamber of commerce or better business bureau can often point you in the direction of builders with a good reputation in their community. Builders who are registered with the Chamber are monitored and problems with them can go onto a permanent report, so they are often very careful and willing to work with you should a problem arise.

If you have the chance, go to your local home show prior to making your selection. Often builders will be present with displays of some of their previous projects. You can research building materials while also getting an opportunity to meet with several contractors all in the same place.

Step #3:

Narrowing down the list

Whether the search has brought you one or twelve contractors with good references you still need to meet with them and ensure that this will be the right fit for you. You’re going to want to interview whomever you have short listed and see if they are up to standard to manage your project. We suggest having a series of questions listed to ask each contractor so you can evaluate their responses on similar issues.

How long have they been in business and what experiences do they have that will apply to your project?
Will they perform the work within their company or will they subcontract the project?

What kinds of insurance will they carry on your project? This issue is often something you should familiarize yourself with in advance. Your mortgage lender will most likely have requirements for what types and amounts of insurance will be required and your builder will be required to provide proof of insurance before the mortgage lender will issue funds.
Can they provide you with a sample of the contract documents you will be signing?

If you already own a property what suggestions do they have about the land and what issues can they foresee with regards to construction? Issues arising from soil and lot grading can single-handedly drive your project over budget if 1aa9 not properly accounted for in advance. Does the contractor feel that any additional engineering will be required due to soil conditions or grading?

What makes this contractor unique compared with his competition? Does he build in an energy efficient manner? Can you see an example of the quality of the finish inside one of his previous projects? These sorts of questions will tell you whether this builder is competent enough to handle the responsibility you are going to hand him.

This is also an opportunity for you to get a feel for what the relationship will be like between you and your builder, after all this business is about building more than houses. You need to feel comfortable interacting with your builder as you will likely be seeing a lot of them in the coming months. If you have a property already then you should take each contractor out to the site and walk it with them. Discuss the design and how it should situate on the lot.

Be sure to interview and receive bids from at least three contractors. You’ll never know what you might have missed if you don’t shop around.

Most importantly of all, make sure you are clear about everything that the contractor tells you. Miscommunication is the most common way for errors to take place in the construction process so make sure from the beginning that the contractors clarifies anything you have ANY trouble understanding. That’s their job. You need to understand what you’ll be purchasing from them, when you need to have made decisions about the house, and what is going to be charged to you right off the bat.

…and when all of your interviewing is done you need to make your final decision. Bear in mind these three summary points when making your final choice.

1.Did I feel comfortable that they were competent?
2.Did I feel confident that they were trustworthy?
3.Did I feel confident that they understood what I need?

Unless the answers to all of those points are yes you should really consider shopping around some more.

Step #4:

Write it all out

Contracts are invaluable in the construction business. Written, clear and concise, these documents can save any project from a thousand, million different pit falls that can arise through the course of a project. Certainly if you feel comfortable with a contractor the verbal agreement he/she proposes might seem like a reasonable agreement. However, the construction of a home takes months of time to complete and who is to say that what appears to be a good relationship at this point will be the same at the end of that process. Therefore a contract is always a prudent way to outline what the responsibilities of the contractor will be. It defines all of their involvement and their responsibilities and also outlines what you, the client, will be responsible for. It defines the cost of the project, including the builder’s fees and all taxes and should show a schedule of when funds will need to be passed over to the contractor from you, and the method you will pay in. There will likely be clauses outlining what the materials of construction will be and how they will be disposed of and at whose cost. Also there will be a section outlining schedules and what your possession date will be scheduled to be. Some contracts will ask for penalties and bonus scenarios depending on if the contractor is early or late for the possession date.

The likelihood is that your contractor will have developed a standard contract form and amendments can be made to that to incorporate any special requirements and terms that you agree on in negotiation. You will need to involve a lawyer to review the contract and you will need to read the contract carefully before signing. You and your contractor should both sign the contract and you should both have a copy.

As mentioned if your project is likely to take a period of months to complete then the contract will include the payment schedule for when you will to submit funds. These installments or “Draws” will be based on the completion of stages of the construction. It is always wise to have a walk through of the property and inspect the process of construction prior to each installment being issued and contractors will often schedule these walk throughs as a part of their process. If you see things which are deficient during the course of the walk through you will have the chance to see them corrected before the next draw is passed on. However, the full value of the contract is not paid out immediately on completion of construction. For most projects 10% of the total value of the contract should be held back until 45 days after completion to protect you against unpaid bills on the part of the contractor. This hold back process is a legal requirement in many areas and the contractor has no right to pressure you to pay out this final amount before it is due.

Contractors who have not received compensation have the option to place a lien on your property to ensure that they receive the payment that they are due. Should this occur, and if you have already paid out the full amount to the contractor, you would be responsible for the outstanding balance legally, so it is always a good idea to make certain that you are safe to proceed before making your final payment. You should consult your local authority to see what the period is after a trade completes their work before they can no longer place a lien and act according to that timeline. Also, as you may not receive notice that a lien has been filed right away you should check with the title registry office in your area to make certain that no liens are on your title before you pay out the hold back amount.

Alterations can be made to the contract through the process of construction; these are often called addendums or amendments. These will give you the freedom to change your mind about certain details of the construction. Often these adendums will require an additional fee depending on the stage of construction and what work will be required to make the change, but it means that you have the option to make changes if you should wish to.

Author: Joel Stewart

Technorati Tags: choosing contractor, contractors, siding contractor

Employment contracts are some of the most important UK business documents you will ever sign in your working life, and yet they are written in a deliberately convoluted and confusing manner, which often makes it difficult to get the clear points of what you’re signing up for. Take your time, and read and re-read every contract, but pay special attention to the clauses, to ensure you understand them. Employers can put some unreasonable bits in here, so it pays to know what each one means. Here are some of the more common employment contract clauses so you know what to look for. And managers: if you want these points enforced, be sure to include them in your UK business documents!

Changes in Circumstances and Personal Information

This common employment contract clause forces all employees to inform the employer when their personal circumstances change. This may be accompanied by a list of circumstances covered by the rule.

Dress Code for Uniforms

If employees are required to wear a uniform, this can be used to enforce how they should be worn. This can include stipulations regarding cleanliness and how they physically are to be worn - though it has to be subject to religious or personal circumstances which can prevent employees from complying.

Gardening Leave

This employment contract clause means that employers can make employees who have handed in their notice, or been dismissed serve out the remainder of their time at home. They will be on full pay, but with the advantage to the company that they are held to the contractual agreements (e.g: confidentiality and exclusivity clauses still remain) and are available to be called back to work at short notice.

Office Conduct/Dress Code

Sometimes, the employer will outline exactly the kind of conduct and dress code they expect when employees are in the office - this would go here.

Office Relationships

If the employer chooses, inter-office romantic or sexual relationships can be discouraged here. This is especially common when involving two employees of different seniority for the conflict of interest it would create. This clause in a contract should then detail what action will be taken in instances where the rule is broken. Possibilities include re-deployment or firing of one of the employees.

Restrictive Covenants

There are a number of different restrictive covenants that can be enforced, and largely relate to restricting the employee’s competition to his/her employer when he/she leaves. This can include area-covenants, which prevent employees working for competitors, non-solicitation covenants which prevents the poaching of clients from the former employer and non-solicitation of staff covenants, which prevent the former employee dealing with his/her former fellow employees for a defined time after termination of employment.

Restrictions on Outside Employment

This is one of the more common employment contract clauses. It usually prevents employees taking on any additional work during their agreed hours of employment, and requires written permission from the employer for work outside the agreed hours. This is generally backed up by a note that permission will not be granted for work that competes with the employer’s business or that which will affect the employee’s work performance.

Rights to Intellectual Property

This contract clause can be used to ensure employees involved in creative production waive any right to intellectual property, and clarifies that the employer owns any copyright or other IP right. This can be open to interpretation, so should be accompanied by a definition of what the employer classes as intellectual property

Use of Protective Clothing

This won’t apply to the majority of offices, but this contract clause is designed to ensure that protective clothing and equipment is worn to comply with health and safety regulations. This section may also outline the possible disciplinary action to be taken in the even of a breach.

Keep an eye on these employment contract clauses, and feel free to seek legal advice if you don’t understand the practical application of any part of your UK business documents. It’s too important to get wrong!

Author: Iain Mackintosh

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