JHK Legal Commerical Articles

Unfair Contract Terms in Small Business Contracts

Posted By Cassandra Garton on March 2, 2016
Unfair Contract Terms in Small Business Contracts

From 12 November 2016, a new law will be in effect which will extend the unfair contract term protections to small business contracts.

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Entitlement of Administrators to Make Assumptions on Validity of Appointment

Posted By Patrick Hanrahan on March 1, 2016
Entitlement of Administrators to Make Assumptions on Validity of Appointment

In a recent decision of the Supreme Court of South Australia in Ross & Anor as Joint & Several Administrators of GNC Homes Pty Ltd (Administrators Appointed) –v- GNC Homes Pty Ltd (Administrators Appointed) [2015] SASC 168 (“GNC Case”), the Court was required to decide on the validity of the appointment of Administrators in circumstances where the director who appointed the Administrators had been removed from his position prior to appointment.

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Hall v Poolman and the Impact on Liquidators Pursuing Insolvent Trading Claims

Posted By Dylan Trickey on February 1, 2016
Hall v Poolman and the Impact on Liquidators Pursuing Insolvent Trading Claims

Prior to appeal, the decision in Hall and Ors v Poolman and Ors [2007] NSWSC 1330 was cause for concern for liquidators seeking to pursue directors of liquidated companies for insolvent trading and to a lesser extent, preferential payment claims against unsecured creditors; in particular where liquidators had entered into litigation funding agreements to pursue such matters.

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Unfair Preference Claims in Liquidation – A Basic Guide for Creditors

Posted By Alicia Auden on November 1, 2015
Unfair Preference Claims in Liquidation – A Basic Guide for Creditors

JHK Legal is quite often approached to provide advice on unfair preference claims in liquidation. An unfair preference is precisely as the name describes – payments or transfers of assets that give a creditor an advantage over other creditors. Liquidators appointed to companies can recover such unfair preferences to distribute equally among the creditors.
While usually money, unfair preferences can include a variety of transactions. This article will focus on money.

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DOCA Extinguishes Debt of Secured Creditor, but does not Extinguish Right to Recover. In the Wake of Bluenergy Group Limited (Subject to a Deed of Company Arrangement) (Administrators Appointed) [2015] NSWSC 997.

Posted By Tania Smith on October 1, 2015
DOCA Extinguishes Debt of Secured Creditor, but does not Extinguish Right to Recover. In the Wake of Bluenergy Group Limited (Subject to a Deed of Company Arrangement) (Administrators Appointed) [2015] NSWSC 997.

It has previously been general practice that a secured creditor who abstains from voting on a Deed of Company Arrangement (“DOCA”) will effectively stand outside of the terms of the DOCA and will be free to enforce their security pursuant to section 444D(2) of the Corporations Act 2001 (Cth) (“Corporations Act”).

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Important QBCC Amendments and the Final Implementation of the Queensland Building and Constructions Commission and Other Legislation Amendments Act 2014 (Qld)

Posted By Tim Jones on September 1, 2015
Important QBCC Amendments and the Final Implementation of the Queensland Building and Constructions Commission and Other Legislation Amendments Act 2014 (Qld)

Now that 1 July 2015 has passed some important amendments have been applied to the Queensland Building and Constructions Commission and Other Legislation Amendments 2014 Act (Qld) (“Amending Act”) and it is important for current building licence holders in Queensland to familiarise themselves with such amendments.

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Do Your Contracts Contain Penalties?

Posted By Valerie Teo on August 1, 2015
Do Your Contracts Contain Penalties?

If you are familiar with contracts, you will know that in the event of a breach, the non-breaching party may be entitled to a claim of damages in an amount that reflects their loss or damage. Where the contract sets out in advance the value of the damages entitlement, that amount must be a “genuine pre-estimate” of the loss that the non-breaching party will suffer if a breach occurs.

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Setting Aside Personal Guarantees – Grounds of Invalidity

Posted By Kathleen Faulkner on July 2, 2015
Setting Aside Personal Guarantees – Grounds of Invalidity

Personal guarantees are binding promises provided by a third party who agrees to be personally liable for the obligations of the contracting party, such as a company. Such guarantees are enforceable in the event of that contracting party defaulting.

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What are the Differences Between a Deed and an Agreement?

Posted By Rhonda King on July 1, 2015
What are the Differences Between a Deed and an Agreement?

Lawyers are frequently asked what the difference is between a deed and an agreement and when you would use what type of document.

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How Lenders Should Deal with a Defaulting Borrower

Posted By Michael Tourkakes on June 2, 2015
How Lenders Should Deal with a Defaulting Borrower

Watch out for any warning signs. Firstly, a lender needs to spot the early warning signs. These signs include the borrower breaching or being about to breach its financial overdraft limits, or suddenly requesting new facilities or an extended repayment timetable. The borrower may be under increased creditor pressure or subject to litigation, insurance claims or rent reviews.

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Insolvency

Insolvency

Worried you might lose your business, your livelihood or your home?

If you are the owner or director of a company that cannot meet its financial obligations you might be trading insolvent and you are right to be very concerned.

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What Is Insolvency?

What Is Insolvency?

Insolvency is a term that applies to both companies and to individuals who can no longer meet their financial obligations, however personal insolvency (also known as bankruptcy) only applies to individuals.

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The 7 mistakes people make when they hire an insolvency lawyer

The 7 mistakes people make when they hire an insolvency lawyer

If you’re not sure whether you need to hire an insolvency lawyer or not…it probably means you do.

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