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Rights & obligations: Basic terms (1)

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LAWYER 1: Under the license granted to my client, he’s entitled to 15% of the gross sales of Liney's Peanut Butter in the territory. He's also eligible for an additional bonus of 5% if he sells more than 100,000 jars in a single year.

LAWYER 2: That's true. But before you can invoke that clause, your client bears the burden of proving all the conditions have been fulfilled.

LAWYER 1: Surely we've done that?

LAWYER 2: Perhaps. But the right to the additional 5% doesn’t vest until payment’s been received on the sales.

LAWYER 1: Payment became due on those sales last month. We're exercising our rights under the 5% bonus clause.

LAWYER 2: Yes, but the clause does state 'upon receipt of the proceeds of the sale'. I'll talk to my client and see what I can do.
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