question 1

Renting out extra space. Do I have to tell the landlord? This situation should be used to reinforce the distinction between subletting premises and assigning the lease, and the various situations in which a business may want to consider these options.

question 2

Bank wants a general security agreement. What is it? Discuss the financing of business operations and the concept of creditors requiring a loan secured by a specific asset or a blanket security arrangement covering present and future assets of the business .

question 3

Using house to secure a line of credit. What does this mean? The purpose of a line of credit for a business, the use of mortgages to secure repayment of debt, and the remedies in the event of default in payment should be discussed.

question 4

Landlord wants a "right of distress" in the lease. What is it? You need to reinforce the distinction between commercial tenancies and residential tenancies and to introduce a discussion on some of the key provisions of a commercial lease.

question 5

Personal property and bailment could be reviewed generally as part of the discussion with the focus being brought around to bailment for reward. Identify the legal duty attached to this type of bailment and the standard of care used to determine if the duty has been met. What facts would need to be known to determine if the duty has been met and to provide some examples of steps a business of this nature could take to manage its risk and demonstrate it has met the standard of care.