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Gold/Mining/Energy : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: average joe who wrote (18635)	4/27/1999 4:15:00 PM
From: russet	Read Replies (3) \| Respond to of 26850

Business contracts I have seen and been a part of always state what is to be done, where, how and within what time. JV mining contracts I have seen, state that the operator decides what is to be done, and if that is within the guidelines of the original or amended JV agreement, the other partners either agree in writing to the plan and pay their money by a certain date as spelled out by the JV agreement, or remedies must be paid,...in this case a dilution. As most JV contracts follow the same general patterns, and oral agreements are laughed at,....the JV agreement itself will dictate what penalty will be assigned if a party fails to do something within the stated time limits,...unless you believe that the contract wasn't drawn up by competent lawyers, which in this case I doubt. Aber already failed last year to contribute to a winter program and was diluted. This year they failed to give written notice by the stated deadline, therefore were diluted again. Oral agreements are meaningless at this level of legal dealings between two corporations each with their own legal teams. They are equals, and any judge will assume they read and understood their contracts, and that the contracts were explained to them by their lawyers before they signed. To say Winspear failed to do something by an allotted time, as has been alleged by Aber, is meaningless unless there is a penalty for not doing it,. ...or by not doing it, a time limit for action by Aber was never set. If Aber received the documents from Winspear outlining the Winter99 program and failed to reply in 15 days (or whatever it states in the JV agreement) the operator can assume they do not intend to participate, and like the previous year the operator can opt to pay for the program completely by themselves, thus diluting Aber again. It's all spelled out in the JV agreement. Guess what,...Aber failed to confirm in writing they were participating,...so they are being diluted. I have been involved in many of these contracts between corporations (with good legal teams representing them) and know of no contracts where anything oral was ever accepted as being legal. The contract must be followed to the letter, unless something in the contract contravenes a provincial, federal or territorial law, or results in one party giving up some right that courts will not allow them to give up,..as happens in some franchise agreements in which the franchisor asks for things from the franchisee that the court will squash because the franchisee is giving up rights granted to him by some law of the land. If the lawyers did something wrong, or omitted something, they may get sued, but that is another story. russett