The Sale Deed
The Sale Deed between the taxpayer and Mr. PH had some important sections:
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Clause 2.1: Mr. PH agreed to sell his medical practice, including its goodwill and items listed in Schedule 1, to the taxpayer.
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Clause 2.3: The sale price was $350,000. The taxpayer paid $10,000 upfront, and the remaining $340,000 would be paid when Mr. PH started working at the medical center.
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Mr. Duff explained how fees were determined. Factors included:
- The hours Mr. PH would work per week.
- The number of patients he had in his previous practice.
- The medical center's need for more doctors.
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Adding new doctors could increase the medical center's annual revenue by $200,000 to $300,000.
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Clause 2.7: The sale was considered a going concern, and Mr. PH had to run his practice efficiently to maintain its goodwill.
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Clause 4.1(d): The sale wouldn't be finalized until Mr. PH signed the Practitioner Contract and started working at the medical center for at least five years, with a minimum of 50 hours per week.
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Clauses 5.1 and 5.2 ensured that doctors worked at the medical center for the contract's duration. Breaching this restraint clause would lead to paying damages.
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Clause 8 allowed the taxpayer to end the Sale Deed for various reasons, including misconduct by Mr. PH. If terminated for misconduct, Mr. PH had to pay a monthly fee for the remaining contract period.
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Clause 10 stated that Mr. PH was an independent contractor, responsible for his insurance, taxes, and holidays.
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