The Sale Deed
The Sale Deed between the taxpayer and Mr. PH had some important sections:
Clause 2.1: Mr. PH agreed to sell his medical practice, including its goodwill and items listed in Schedule 1, to the taxpayer.
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.
Mr. Duff explained how fees were determined. Factors included:
Adding new doctors could increase the medical center's annual revenue by $200,000 to $300,000.
Clause 2.7: The sale was considered a going concern, and Mr. PH had to run his practice efficiently to maintain its goodwill.
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.
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.
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.
Clause 10 stated that Mr. PH was an independent contractor, responsible for his insurance, taxes, and holidays.
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