How should a free management contract be formed so that it is not invalid in the Moroccan Commercial

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Appartement meknes kamilia

Published on Aug 28, 2024
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The free management contract in Moroccan law, especially within the framework of the Commercial Code in Moroccan law, is considered one of the contracts in Morocco that gives investors the opportunity to manage and exploit a commercial or industrial project or a commercial establishment without being its owner. This contract allows the free manager to benefit from the profits of the project in exchange for a commitment to good management of the project according to the terms of the agreed contract. Therefore, the management contract is a legal tool that allows a person called the lessee to manage a commercial establishment or commercial property in Morocco without being the owner. The management contract in Moroccan law regulates this process precisely, as it is also known as the free management contract or the management contract for the commercial establishment. This type of contract allows the manager the freedom of management in exchange for paying an agreed amount to the owner. The management contract for the commercial establishment gives the manager the right to operate and exploit the establishment, while bearing full responsibility for daily operations. According to the free management contract in Moroccan law, the contract must be registered in the commercial register to ensure transparency and protect the rights of the parties, I mean the lessor and the lessee. A group of professors addressed this topic, most notably Dr. Jamal Maatouk, who addressed the topic of the free management contract for the commercial asset, pointing out its importance in supporting small and medium enterprises. We also highlighted in this video the customary management contract, which is sometimes used without respecting the legal terms of the management contract, which may cause legal problems and the dismissal of the manager or the closure of the business or the loss of the business asset. One of the common issues is the problem of the management contract for a commercial establishment, especially when it is not properly registered in the commercial register in Morocco, which leads to disputes and loss of rights. In addition, the management contract tax imposed by the authorities must be taken into account to ensure financial compliance. The management contract for the commercial establishment must be published in the Official Gazette and in a second newspaper. In general, the management contract for a commercial establishment in Moroccan law or the management contract for a café or any other activity represents an important opportunity for investors to manage projects without the need to purchase assets directly, but it requires a thorough understanding of the legal terms and obligations, as the free management contract is an agreement between the owner of the commercial asset and another person called the free manager. The free manager is granted the right to manage and operate the commercial or industrial project for a specific period, while bearing all responsibilities related to management and administration, while obtaining characteristics such as the independence enjoyed by the manager and giving him complete freedom in managing the project, as he bears full responsibility for managing it for all debts and obligations resulting from managing the project during the term of the contract. The free manager also obtains all profits resulting from operating the project, with the payment of an agreed amount as rent to the owner. In this video, we will show how to write a free management contract model, where we must respect the following matters: Identifying the parties: The identity of both the owner and the free manager must be clearly identified in the contract. Duration of the management contract: A specific period of time is specified for the free management contract, and it can be renewed by agreement of the two parties. Obligations of the manager: Including paying the rent, and bearing full responsibility for management. Obligations of the owner: Providing the manager with the project and its components in a way that allows it to operate immediately. In the event that we want to terminate the management contract or cancel the free management contract, this is done in the following cases: Expiry of the management contract period: Expiry of the agreed period of time. Mutual agreement: The agreement of both parties to terminate the free management contract before its expiration. Breach of the management contract: If one of the parties breaches its obligations, the other party has the right to terminate the contract. The free management contract shall not be terminated unless one of these reasons that terminate the rental relationship between the lessor and the lessee of the business asset occurs. We would like to point out in the video that the benefit of the management contract over the lease contract is that the owner has a fixed income without bearing the risks of daily operation and without losing the business

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