1. What is fraud?

   Fraud occurs when the accused makes false statements to manipulate the other party into a transaction or when the party charged with fraud withholds particular information from the other party to manipulate the other party into a transaction. In a shorter term, the accused will manipulate a situation to enter a transaction.

1. What are the differences between the option to purchase, ROFR, and ROFO clauses?

   There are three approaches to giving a tenant rights to purchase property: an option to purchase, a right of first refusal, and a right of first offer. An option to purchase is a fixed right, where a tenant may purchase property even if (1) the landlord does not want to sell, (2) there is another third party offer(s), and (3) the landlord does want to sell, but cannot due to the tenant’s option. This provision may be in a separate document and still be applicable. The option provision can last for the entirety of the term or less than.

   The right of first refusal is a right of the tenant that allows the tenant to match the offer of a third party to purchase the property. This can be within the lease or another document. In this case, the power to dictate who can buy the property lies in the hands of the landlord. If a third party offer is made, the tenant may match the price. This process may run for the entire duration of the lease’s term.

   The right of first offer is a tenant’s right to make an offer before the landlord offers the property to a third party. This right allows the tenant to become involved in the purchasing process before a third party.

1. What are expansion rights?

   Essentially, an expansion clause is a negotiable clause in a lease that allows the tenant a right to expand within the building they are leasing. There are three provisions that allow the tenant to expand the leased property: the option to expand, right of first refusal, and the right of first offer. These rights are distinct from each other.

1. What does the relationship between business tort claims and contract claims look like?

   Business tort claims is that it addresses civil wrongs in a business or commercial relationships. Contract claims address an agreement between parties. In many cases, business tort claims and contract claims are linked because a business relationship and its responsibilities are held in a contract, and a business tort claim may emerge because of a reach of that contract.

1. How can you avoid litigation in disputes?

   Resolving disputes without litigation can save valuable time and resources. A company would have to spend its time and resources on investigating and responding to claims and a legal dispute can negatively influence a company’s reputation. That is why it is important to react to claims as soon as possible to avoid litigation. Managing risks can reduce chances of litigation. These risks include, transactional risks, risks related to transactions with foreign countries, counterparty risk, product liability risk, and risks related to daily business activities.

1. What is an insurance agreement? What is risk in context with insurance?

   Insurance is a contracted agreement, where the insurer takes on the risk of a financial loss incurred by the insured. The insurer provides the assurance that the loss will be covered and the insured is who receives the protection. In the insurance context, risk is the event that causes financial loss that will not occur.

Does Georgia law require written leases?

Georgia law does not require written leases for agreements of one year or less. If the rental agreement extends one year, then a written lease is required. Oral agreements are legal in the state of Georgia, however, formal written agreements are recommended. Georgia law requires that the rental property description and the contact information of all parties involved to be enlisted with the agreement.

There are three approaches to giving a tenant rights to purchase property: an  option to purchase, a right of first refusal, and a right of first offer.  A tenant would consider purchase rights to protect good will, to protect access, to control costs, and to control the process.

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