Commercial Law

Armstrong Lawyers advises Melbourne and Victorian businesses on the legal framework within which they operate — company and trust structures, shareholder and unitholder agreements, commercial contracts, restraints, Australian Consumer Law compliance, and director and trustee duties. The work is governed primarily by the Corporations Act 2001 (Cth), the Competition and Consumer Act 2010 (Cth) (including the Australian Consumer Law), the trustee legislation, and the common law of contract.

Our clients are predominantly owner-operated businesses, professional firms, family enterprises and small-to-medium companies. The value we add is the combination of careful drafting and commercial judgement — documents that work commercially as well as legally, structures that anticipate disputes and exits, and advice that respects the client's time and budget.

If you are also looking at a transaction, see our guides to buying a business in Victoria and selling a business in Victoria.

Structuring

The most consequential decisions in a business's life are often made in the first weeks: choice of structure, choice of name and intellectual property arrangements, choice of shareholders or unitholders, and the terms on which they come in and can leave. We advise on discretionary trusts with corporate trustees, unit trusts, companies, joint ventures and hybrids, and on the tax and asset protection consequences of each. We work in parallel with the client's accountant so that the legal structure aligns with the tax strategy from day one.

Shareholder and unitholder agreements

A shareholder agreement deals with the issues the constitution does not — board composition, reserved matters that require unanimous or supermajority approval, deadlock resolution, restraints, capital calls, drag and tag along rights on sale, pre-emptive rights on transfer, and exit mechanics on death, incapacity or default. For unit trusts, the equivalent unitholder agreement deals with the same issues alongside trust-specific matters such as the appointor role. We draft these documents to be commercial and usable rather than litigation-proof; the goal is to prevent disputes, not to win them.

Commercial contracts

We draft and negotiate the full range of commercial contracts — supply and distribution agreements, services agreements, agency and consultancy arrangements, software and SaaS terms, licensing and IP arrangements, joint venture agreements, and standard form terms and conditions. The quality of a commercial contract is measured by how clearly it allocates risk, how cleanly it can be exited, and how well it survives a dispute — not by how many pages it runs to.

Restraints of trade

Victorian courts will enforce restraints of trade to the extent reasonably necessary to protect a legitimate interest. In a business sale context, the legitimate interest is the goodwill the buyer has paid for; in an employment context, it is confidential information and customer connections. We draft cascading restraints (multiple durations and geographic areas, with the broadest enforceable terms upheld) for business sale agreements, shareholder agreements and senior employment contracts, and act in restraint enforcement proceedings when the time comes.

Australian Consumer Law and unfair contract terms

The Australian Consumer Law applies to almost every Victorian business that supplies goods or services. The prohibitions on misleading or deceptive conduct, unconscionable conduct, and unfair contract terms in standard form consumer and small business contracts impose obligations that must be built into marketing, sales and contract drafting. From November 2023, contraventions of the unfair contract terms regime attract civil penalties — making historic standard form contracts an active compliance risk. We review and update standard form documentation to current law.

Director, trustee and partner duties

Directors, trustees and partners hold positions of trust with codified duties — care and diligence, good faith, proper purpose, no conflicts, no improper use of information or position. We advise on the practical application of these duties to particular decisions, and act in disputes about alleged breaches. For directors of SME companies, the most common exposure points are insolvent trading, related party transactions and decisions taken in conflict.

Why work with us

We are a small commercial practice with deep experience across the lifecycle of an owner-operated business — from structure through to sale, with disputes, succession and estate planning along the way. Our pricing is transparent, our scope is defined up front, and our work is partner-led rather than delegated. For businesses that want a long-term legal adviser rather than a transactional service provider, we are well suited.

Frequently asked questions

What's the right structure for a new business?

The most common owner-operated structure in Victoria is a discretionary trust with a corporate trustee, providing flexibility on distributions, asset protection and access to the small business CGT concessions on a future sale. A company is appropriate where there are unrelated co-investors, capital raising plans, or specific tax outcomes are sought. The choice has long-term consequences and should be made with advice from both lawyer and accountant.

Do I need a shareholder agreement?

Yes, whenever there is more than one shareholder. A shareholder agreement deals with the issues the constitution does not — decision making, deadlock resolution, restraints, drag and tag along rights, pre-emptive rights on transfer, and what happens on death, incapacity or exit. The cost of preparing one is a small fraction of the cost of resolving a dispute without one.

Are restraints of trade enforceable in Victoria?

Yes, to the extent reasonably necessary to protect a legitimate interest — for example the goodwill of a business that has been sold, or confidential information and customer connections of an employer. Cascading restraints (multiple durations and areas, with the broadest enforceable terms upheld) are standard practice in business sale and senior employment contracts.

What is the Australian Consumer Law and does it apply to my business?

The Australian Consumer Law is a schedule to the Competition and Consumer Act 2010 (Cth) and applies to almost every supplier of goods or services in Australia. It prohibits misleading or deceptive conduct, unconscionable conduct and unfair contract terms, and imposes consumer guarantees. Compliance is not optional, and breaches can carry substantial penalties.

What is unfair contract terms regulation?

The unfair contract terms regime in the Australian Consumer Law applies to standard form consumer and small business contracts. From November 2023, contraventions attract civil penalties. Standard form contracts used by Victorian businesses (terms and conditions, supply agreements, services contracts) need to be reviewed against the current regime.

Related services

From the Information Centre

Further reading

Visit the Armstrong Lawyers Information Centre for commentary on Victorian legal issues relevant to this area of practice.

Speak with Armstrong Lawyers

For commercial law advice that combines technical drafting with commercial judgement, Contact Armstrong Lawyers on 134 134 or submit an enquiry through our contact page.