Thanks for getting back to me. A monthly payment of $500 for a 3-year term is a clear way to structure this. Since the booth rental agreement would be separate, the payment for the building could be a simple, standalone financial arrangement. This makes it easier to track and enforce the building payment obligation without mixing it up with her rent for the booth.
Regarding what happens if she leaves early, that's a key part of this. Your idea about having her pay off the building is a good one to consider, but it's important to make sure it's fair and enforceable. The goal is to protect your investment without creating a penalty that a court might view as unreasonable. A court might not enforce a clause that's seen as a punishment rather than a measure of your actual damages.
A better way to structure this might be to create a formula for what she owes if she leaves early. For example, the contract could state that if she leaves before the 3-year term is up, she'll have to pay the remaining balance of the $500 monthly payments for the rest of the term. This is often more enforceable since it's directly tied to the original agreement and not just an arbitrary number.
Another option is to set the clause up as a liquidated damages provision. This would spell out a specific amount of money she would owe if she breaches the contract. To be valid, this amount has to be a reasonable estimate of your actual damages (what you would lose) and not a penalty. This is a bit more complicated, so you'd want to be very careful with the wording to ensure it holds up.
Here's how I think you should proceed. You could draft a simple contract for the building commitment that includes these points. You'd want to have a clear start and end date for the 3-year term, and specify the $500 monthly payment. Crucially, you would want to include a clause that addresses early termination, maybe a liquidated damages clause, which states what happens if she leaves before the 36 months are up. This approach helps you have a clear, enforceable contract to protect your investment. If she leaves early, you have a clear path to seek the money owed, which could include going to small claims court if necessary, since the amount is a fixed number.
Did I completely answer your question about the contract and what to do if she leaves early? Do you have any follow-up questions?
Thanks again for letting me assist you!
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Good morning! I'm a salon owner and I am doing a booth rental. That is pretty clear. I was wondering how I go about adding or another contract. I bought a building for an esthetician. I had discussed with her that she would have to sign a 3-year contract to help pay off the building and get a commitment for that. This would pay off the building and then some for me.
My question is should I add a clause in the booth rental agreement or have a separate contract for that?
It sounds like you're looking to add a clause or a separate contract for the esthetician in your salon. Have you already discussed this with the esthetician?
Yes
Are there any specific terms or conditions you are considering including in this new contract or clause?
Yes, a 3-year commitment
Is there anything else the Lawyer should know before I connect you? Rest assured they'll be able to help with your commitment.
Yes. To help pay off the facial building that was purchased by the owner.
Hello! My name is TJ and I’m an attorney. Thanks so much for the opportunity to assist you! I’ve gone over the details you shared and I’ll post my initial response shortly. I’ll also post a few quick questions. They’ll help me better understand your situation so I can give you a more complete and tailored answer.
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(1) If you don’t hear back from me right away at any time throughout our conversation, please don’t worry — I WILL GET BACK TO YOU! I might be working on your response, helping another customer, or dealing with a tech issue. Depending on what’s happening, it may be several minutes (or more) between messages. That’s normal — you didn’t lose me and our conversation is not over! I really appreciate your patience!
(2) This is general legal info only. I can’t represent you or form an attorney-client relationship.
Hi again! A separate contract is generally the better way to go. A booth rental agreement is usually for a shorter term and a commitment of this kind would change the entire nature of the relationship. By using a separate contract, you can make the terms of the building purchase and commitment clear without complicating the existing rental agreement. This approach helps avoid any confusion about what each agreement covers.
Let's discuss this in more detail so I can provide a more thorough response.
What is the specific payment structure for the esthetician's commitment to help pay for the building? For instance, will it be a fixed monthly amount, or will it be tied to her revenue?
What happens if the esthetician decides to leave before the 3-year term is up? Is there a clause that addresses a breach of contract or early termination?
What state are you in?
Fixed monthly amount of $500
I needed help with the clause if she leaves before the 3 years. Maybe pay off the building?
I am in Oregon
Can you send me what you think would be a good contract for this?
Thanks for getting back to me. A monthly payment of $500 for a 3-year term is a clear way to structure this. Since the booth rental agreement would be separate, the payment for the building could be a simple, standalone financial arrangement. This makes it easier to track and enforce the building payment obligation without mixing it up with her rent for the booth.
Regarding what happens if she leaves early, that's a key part of this. Your idea about having her pay off the building is a good one to consider, but it's important to make sure it's fair and enforceable. The goal is to protect your investment without creating a penalty that a court might view as unreasonable. A court might not enforce a clause that's seen as a punishment rather than a measure of your actual damages.
A better way to structure this might be to create a formula for what she owes if she leaves early. For example, the contract could state that if she leaves before the 3-year term is up, she'll have to pay the remaining balance of the $500 monthly payments for the rest of the term. This is often more enforceable since it's directly tied to the original agreement and not just an arbitrary number.
Another option is to set the clause up as a liquidated damages provision. This would spell out a specific amount of money she would owe if she breaches the contract. To be valid, this amount has to be a reasonable estimate of your actual damages (what you would lose) and not a penalty. This is a bit more complicated, so you'd want to be very careful with the wording to ensure it holds up.
Here's how I think you should proceed. You could draft a simple contract for the building commitment that includes these points. You'd want to have a clear start and end date for the 3-year term, and specify the $500 monthly payment. Crucially, you would want to include a clause that addresses early termination, maybe a liquidated damages clause, which states what happens if she leaves before the 36 months are up. This approach helps you have a clear, enforceable contract to protect your investment. If she leaves early, you have a clear path to seek the money owed, which could include going to small claims court if necessary, since the amount is a fixed number.
Did I completely answer your question about the contract and what to do if she leaves early? Do you have any follow-up questions?
Thanks again for letting me assist you!
Hi again! I’m sorry to say that this is an online question-and-answer platform only. In fact, the terms of service actually prohibit us from creating an attorney-client relationship. So, as I mentioned earlier, I can’t act as your attorney. This means that I can't draft a contract for you. I’m sorry for that disappointing news! However, I am happy to continue answering your legal questions about this issue.
