Business School

Topics: Contract, Negotiation, Contractual term Pages: 4 (1192 words) Published: May 19, 2013
APRIL 14, 2013

Table of Contents

How you will split the $15,000 left in the investment?3

How to handle the lease on the kitchen space, which has 18 months more to run?3

How to handle the lease on the van, which has 18 months more to run?4

How to handle the lease on the kitchen equipment, which as six months more to run?4

What have you learned this week that would ensure that each of the above outcomes would be a win/win situation?5


How you will split the $15,000 left in the investment?

In the absence of a structured legally binding agreement, there were no contingencies set in place incase of an exit or termination of the partnership. This should have been planned ahead of time. As far capital distribution goes, at the beginning of the partnership, we put $25000 and the chefs put $10,000 plus $10,000 adding up to $45,000 for 100% of the shares. Each share is worth $450; therefore we own 55.5% of the company while chefs own $45.5%. Now we have $15,000 left to be split. If we split this capital according to the ownership percentage, we should receive $8,325 and the chefs should receive $6,675. But the chefs do not deserve this as they caused the business to fail. Also capital is needed for our new venture, in which we are looking forward in investing in; therefore we should only give them $3,000 and keep the $12,000. In order to get them agree on this distribution, we should use the kitchen equipment as a negotiation factor. We can not utilize the kitchen equipment in our flower shop, but it is essential for the chefs.

How to handle the lease on the kitchen space, which has 18 months more to run?

We will need to rent space for our flower shop, and the leased space of the catering shop may work for our business. On the other hand, there is a kitchen attached to the shop that we will not be able to...
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