Entrepreneurs at some stage are keen to bring investors (either angel investors or VC’s) on board. It comes with a lot of documentation and legal formalities. One such important document in the Term Sheet which most entrepreneurs find difficult to understand.

What is Term Sheet?

A term sheet is an agreement detailing the key deal terms and valuation of the company which the founding team and investors have reached as an agreement. The term sheet is just an informal agreement and isn’t legally bounded. It doesn’t imply any obligations for either the investor or the business to initiate the investments or the transfer of shares.

What does a Term Sheet contain?

Each business is unique and has its own requirements. It is always recommended to have a customized term sheet which suits your business model. A business is therefore recommended to consult with a Business Lawyer to draft the term sheet.

Key terms that must be included in a term sheet:

Details of money invested:  A convertible note (credit which has an option of getting converted into equity at a future date) of an equivalent amount may be created and kept as a guarantee.

Type of stock: The kind of stock allotted to the investor must be mentioned in the term sheet. The type of stock most favored by investors is preferred shares which entitles them to vote and give an upper hand in case of liquidation.

Board of Directors:  E The decision of getting someone on the board of directors must be mutually agreed and roles and responsibilities of each should be clearly mentioned.

Equity Dilution:  Early investors can have the right to buy shares at the new price, which may be lower and in priority. They can also and maintain their existing ownership by the time they want it to.  All these information must be included in the term sheet.

Tranches:  Tranches defines the stages in which the investor wants to transfer cash to the startup. The period of tranches must be clearly specified in the term sheet as it reduces both the founders and investor’s risk.

Right to buy shares back:  This ‘right of first refusal’ allows existing owners to reclaim shares that are about to be sold to a new investor. This prevents the ownership of the company. It is ideal for founding team to exercise this option and clearly mention in the term sheet to avoid confusion later on.

 

Our Business Lawyers based out of Edmonton, Alberta can help you create a term sheet for your business.

 

 

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Important Tips for Buying Investment Properties in Edmonton, Alberta

Buying your first investment property can be a challenging endeavor. It is becoming increasingly popular in Alberta, especially with the employment and economic boom that we’re experiencing, due to heightened employment opportunities. Purchasing an investment property when your mortgage is paid off is a great way to earn extra cash as long as you’re prepared to take on all of the responsibilities of being a landlord. Generally looking for a property in an area where rents and demand for properties will rise in the future is your best bet. If you’re looking for an investment property in Alberta, there are a few things to look for.

Budget

What are you prepared to spend on this new investment; please note that investment properties require a minimum of 20% down-payment on the purchase of the property? Will you have to take out a loan? When you set our budget, make sure to include property taxes, utilities (if you’re planning to pay them), mortgage, maintenance fees and even land title office fees.

Neighborhood

When you have your budget set you should know approximately what neighborhoods you can look at in your price range. Once you have them narrowed down, have a look at all of the listings to make sure there aren’t too many properties on the market and that the properties are selling for a reasonable price. Getting the cheapest house is not necessarily the best idea. Also, if you are in a transient area (like a University area) you can expect young tenants and high turnover for renters. This is not necessarily a bad thing, but you will have to put more work into renting it out on a regular basis. Also, take a look at the number of vacancies on the block – are there too many? If so, it may be a neighborhood in trouble.

You can find more details from Service Alberta here.

Amenities

What are the amenities like around the neighborhood you’re looking at? Specifically, the addition of these amenities (either current or in the future) can help you raise your rent which is an advantage:

• Grocery store
• Transit
• Reputable Schools (elementary and/or universities)
• Walking or jogging paths
• Restaurants

Crime Rate

For obvious reasons, you would most likely want an investment property in an area with a lower crime rate.

Development

Make sure you know what the city’s development plan for your area is (if any) and what they will be building in and around your property in the coming years. Development can have both a negative and positive effect on what you charge for rental fees.

For more information, you can connect with our Real Estate Lawyers based out of Edmonton, Alberta.

 

 

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Why You Need Estate Planning in Edmonton, Alberta

Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.

— Benjamin Franklin, in a letter to Jean-Baptiste Leroy, 1789.

Death in some, if not all cases, is very uncertain. Few people plan their life for next 5 years, 10 years and some for life, even after death. Of all the things that go into planning is your real estate. Estate planning in Edmonton is about planning the distribution of your owned property among your heirs, caretakers and third party, at the end of your life. Estate planning can be done either by creating a will or a trust.

A Will is a document that :

1. Directs how your property will be distributed,
2. Appoints a legal representative to carry out your wishes, and
3. Names a guardian for children who are minors at the time of death.

 

A Will doesn’t stand in all cases such as :

1. Joint Tenancy with Right of Survivorship
2. Life Insurance Proceeds
3. Bank Accounts
4. Retirement Plans

 

A trust, on the other hand, is a legal arrangement through which a person or an institution often called a “trustee,” holds legal title to property for another person, called a “beneficiary.”

Unlike, a will, trust can be exercised as soon as it is created (before death), at death or after death.

A will covers any property that is only in your name when you die. It does not cover property held in joint tenancy or in a trust.

A trust, on the other hand, covers only property that has been transferred to the trust.

Another difference between a will and a trust is that a will passes through probate. That means a court oversees the administration of the will and ensures the will is valid and the property gets distributed the way the deceased wanted. A trust passes outside of probate, so a court does not need to oversee the process, which can save time and money. Unlike a will, which becomes part of the public record, a trust can remain private.

What happens if you die without a Will?  If you die without a will, the Wills and Succession Act entail how the property will be distributed.

A properly documented Estate plan ensures, the lesser stress of confusion and legal follow-ups for the family and loved ones after your death.

Your Edmonton based legal pro can guide you how best to use a will and a trust in your estate plan.

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Drunken Driving in Edmonton, Alberta

You all might be aware of the fact that drinking while driving or drunken driving is a disgraceful act for anyone. There are many advertisements, hoardings or news which inform you about the harmful effects of drunk driving cases. In many cases, innocent people lose their lives because someone else was irresponsible. When people are drunk they are not conscious of their surroundings therefore drinking and driving should never and can harm many people. Drunk driving is a criminal offense with many criminal defense lawyers specializing in the area.

A drinking and driving charge can make a permanent black mark on your record and you may have to face very harsh punishments. However, sometimes people are wrongly accused. If you are facing a DWI or DUI charge then a DUI lawyer in Edmonton should be consulted. They will fight your case with their best effort and help you be free from any and all charges.

DUI defense lawyers will also inform you about the details of your case and all the possible outcomes. Basically operating a motor vehicle after the consumption of alcohol beverage is classified as driving while intoxicated. There are several classifications of DWI. The most important point is depending on the blood alcohol content, evidence of prior convictions and other considerations may be treated differently by the police, prosecution, and courts. There are different sections of laws for DUI cases.

DWI lawyers in downtown Edmonton explain that DWI law can be prosecuted under two different legal theories. In the first one, a person can be prosecuted for violating the per se law, which is truly based on the alcohol content in the blood at the time the motorist was driving.

A Drunk Driver lawyer will fight your case according to the legal theories. The second theory explains that a person can be prosecuted under the traditional common law that is practiced generally. Even, if you are charged as guilty in the case, lawyers will help you to reduce the penalty according to your case. You can get all the information about the procedure of an impaired driving charge and DUI case by visiting the impaired driving site of Alberta here. You can benefit from the credible, reliable and affordable DWI and DUI legal services and get the required justice. For more information see the Safe Roads Project.

 

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Alberta Workers Compensation Lawyers

Through their efficient and effective services, Workers Compensation lawyers have become one of the best and most preferred resources for those injured on the job.

Employees and workers in any company are entitled to certain benefits to help them in time of need. Any workplace, be it in office or in the field, consists of certain amount risks in several ways. People working in construction companies have a higher chance of suffering to injury if appropriate precaution is not exercised. Accidents caused during work can lead in serious injuries, making the person incapable of working for a certain period. This will leave the person having to deal with the injuries and all the medical bills with a loss of pay. This can be a huge difficulty which can hurt the person’s physical and emotional state to a great extent. At times like these, people can use the rights and benefits they are entitled to. This way they will be able to deal with the injuries and the expenses and loss of pay associated with. However, availing these benefits is not an easy task and most people are underpaid for their injuries. Several others have also been denied their benefits. At such times, it is essential to have a legal counsel who will be able to assist the injured in getting the compensation for their injuries. There are several lawyers in the city who offer services, but most of them are expensive. It is therefore best to choose the services of workers compensation lawyer that is familiar with WCB claims in Edmonton, Alberta.

Edmonton based lawyers have been providing superior legal services to all their clients at affordable legal fees for the past 100 years. They are trained and highly skilled lawyers, with several years of expertise in all areas of law. They are dedicated professional who provide every client with individualized attention and ensure to use all their resources, attention and skills to derive the best results. They understand the client’s situation and put every effort to educate the clients and help them understand the laws associated with the case and the several procedures involved. This way, the lawyers work together with the clients and build a strong case that will be able to get the best compensation that the injured deserves.

Workplace injury law in Edmonton is among the top in Canada have due to their high resolve rate and an impressive track record of performance in client satisfaction. They provide all legal assistance associated with personal injuries and workplace injury/accident compensation.

Note: This is not and should not be taken as legal advice.

Additional resources:

• Here is a review on WCB.
• See the Court of the Queens Bench info on the Act here.

 

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5 Asset Protection Tips

Essential Asset Protection Tips

It doesn’t matter how much money you make or how much you have saved there are certain asset protection tips everybody should know, and there is no excuse for not being familiar with them.

Assets can be property, goods, a business or money you have saved or inherited. The term refers to anything of worth that you have and that someone else may try to take from you, whether it is in the form of a tax lien for unpaid taxes or the settlement of a lawsuit.

Having identified what you have collected and wish to hang onto, the question then becomes what is the best way to protect the assets you have worked to obtain?

Here are some tips everyone should be familiar with no matter  your bank account size:

1. Keep a low profile. Although it is unpleasant to think about, Canada is one of the most litigious countries in the world, and people file frivolous lawsuits every single day. However, they are less likely to file a lawsuit against you or your estate if they do not think that you have the money to pay a settlement. Similarly, lawyers are less likely to take on a potentially frivolous case if there are no assets in question.

2. Separate your assets. Again, although it is unfortunate, lawsuits are a reality and effective asset protection has to address the potential fallout of these lawsuits. If you keep your assets held by separate Edmonton based Limited Liability Corporations (LLCs), then an unfavorable judgment in a lawsuit against one property may not be able to affect the other assets.

*Need a primer on legal corporate definitions? See this site.

3. Avoid general partnerships. General partnerships allow each partner a great deal of authority over one another. If you are in a general partnership, your partner can make major decisions and agreements on behalf of the partnership without consulting you, such as signing for a large loan. Although you were not there when the loan was procured, as a general partner you will be responsible for the repayment of that loan.

4. Keep good insurance. No matter how confident you feel about your asset protection plan, good insurance is an absolute necessity, from car insurance to your homeowners’ policy and everything in between. Under-insuring leaves you and your estate at risk.

5. Get good advice. Speak to a trusted and experienced lawyer in Edmonton and take his or her advice into account as you create a comprehensive estate plan that protects your assets.

When you have worked hard to build an estate, you should take the necessary steps to protect your assets from unforeseen problems or frivolous lawsuits.

The best form of asset protection is to ensure you have updated legal documents such as wills and trusts that will protect those things you hold dear. If you live in and around Edmonton, Alberta, we can contact you with the top estate planning lawyers today for great advice at affordable rates on this important topic.

Please note: This article is not legal advice, please contact a lawyer for assistance if you have been injured in a car accident

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Car Accidents and Damages in Edmonton, Alberta

Information on how to seek damages for vehicle-related accidents in Alberta

It’s common knowledge that if you are injured in a car accident and you are at no fault, then you want to sue the at-fault party for your injuries, but you can not do just that? Well, it is unbelievable in your country’s law. However, this is a truth in Ontario, a place of difficult-to-understand car insurance system which limits the ability of the injured person to sue with a lot of restrictions.

There are a number of restrictions in Alberta on an injured person’s ability to sue for injuries and damages from an accident. One restriction is known as the “threshold”.The threshold is a legal test that an injured person has to meet in many cases to be able to claim for some types of losses, such as pain and suffering. If you do not meet the threshold, then, in many cases, you are not entitled to anything for pain and suffering. The threshold does not apply to everything (ie: income losses). To meet the threshold, the test is often, whether or not the injured person sustained a “permanent, serious impairment of an important physical, mental or psychological function”.

These words are interpreted by statutes and case-law. Another restriction on an injured person’s right to sue is the “deductible”.The deductible is an amount of money that, in many cases, is subtracted from whatever amount your pain and suffering is worth.  There is a statue of limitations on car/vehicle accidents in Alberta – for more information on the law in Alberta click here.

You may also benefit from the Court of the Queen’s Bench Vehicle Claims Act available here.

So, that means that if your pain and suffering are valued at $50,000, then, if the deductible applied, the amount would be reduced by $30,000, leaving only $20,000. The deductible does not apply to pain and suffering that is assessed at more than $100,000 and there are a number of other exceptions. It is best to consult a lawyer in Edmonton about these issues so that you fully understand your rights.

Please note: This article is not legal advice, please contact a lawyer for assistance if you have been injured in a car accident

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