Professor Lois Yoder Beier

Project $2.$ Real and Personal Property, Negotiable Instruments, Secured Transactions, And Suretyship

As a business fawyer speetalizing in start$-$ij$,$ businesses, your netw clients, Frugal Fred and Bariey Bizarre, have scheduled an appointment with you to discuss their legal considerations in acquiring property for their business. Fred and Barney need equipment for their computer business as ivell as a location from which to operate their business where they can maintain their equipment, mect with customers, and provide services. Although I rugal Fred has a substantial amount of moncy to contribute to the business, it is not sufficient to meet all of their needs. Henee, Fred and Bamey are considering financing the equipment for their computer store and pertaps velictes $-$ as well as purchasing real estate, specifically their former work location, an abandoned quarry, as a focation from which to operate their new busimess

Once again, they seck your advice on how to proceed.

Specificalls, Fred and Bamey need advice on the foltowing

What are negotiable instruments $($Promissory Notes$)$ that the lenders are requesting them to sign, and what clauses or terms should they be looking at carefully and why?

What does it mean if their lender is requiring a surety or guarantor?

What are mortgages and security interests that the tenders are requiring and what is the difference between the wwo? Under what circumstances is cach used"

What term and clauses should the real estate sales contract include?

$5$ How should title to the property be held$-$in their individual names or in the name of the business and why? What type of deed should be used for real estate?

What are the potential consequences to Fred and Barney and their business if the business defaults on any of these loans?

Should Fred and Bamey be purchasing computer servers or should they lease space on computer servers owned by other companies? What should be included in a lease agreement?

What are their insurance needs? What type of policies should they be acquiring? Do they need Errors and Omissions Insurance?

$.$ What additional legal and business management advice do you provide Frugal Fred and Barney Bizarre at this point to mavimize the potential success of their business endeavor?

Please submit to Professor Beier by the due date, a final copy of your recommendation for your clients. Frugal Fred and Barney Bizarre. Be Completel!