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

As a business lawyer specializing in start$-$up businesses, your new clients, Frugal Fred and Barney 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 well as a location from which to operate their business where they can maintain their equipment, meet with customers, and provide services. Although Frugal Fred has a substantial amount of money to contribute to the business, it is not sufficient to meet all of their needs. Hence, Fred and Barney are considering financing the equipment for their computer store and perhaps vehicles $-$ as well as purchasing real estate, specifically their former work location. an abandoned quarry, as a location from which to operate their new business.

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

Specifically: Fred and Bamey need advice on the following:

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 lenders are requiring and what is the difference between the two" Under what circumstances is each used?

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

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 Barney 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 maximize 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 Complete!!