Whether starting a business or adding a shareholder or partner, planning out the details are extremely important when everyone can agree reasonably. Many business owners and/or partners verbally agree and “go with the flow” until something goes wrong, then it is difficult for them to agree reasonably on what is best for the business. Similar to a marriage, Shareholder and Partnership Agreements are Pre- and Post-Nuptial Agreements for your business.
In addition, if you have a clear Shareholder or Partnership Agreement intact, it is also recommended to have an Operating Agreement, so everyone is clear on their role and responsibilities, such as business development, overseeing staff, hiring, firing, where funding comes from and at what threshold, etc.
If you are considering purchasing a business, buying into a business or selling your business, just as you would with a real estate transaction, a contract including all of the details should be present and recorded. It is not recommended to leave details to verbal discussions to ensure clear communication between all parties. Buying or selling a business is a large transaction and can take months or even years to find the right fit, so be sure to protect your time interest by ensuring details and terms are always documented.
In the United States we expect people to keep their promises. We expect our customers to pay for the goods and services we sell them, and we expect businesses to deliver the goods and services they sell us. Virtually every promise made in business is a contract. Contracts can be in writing, or they can be oral. Spoken promises can be just as binding as other kinds of contracts. Unfortunately, sometimes businesses, partners, and customers all fail to live up to the simple requirement that a contract made should be a contract kept. When that happens, the courts are there to help. In fact, most lawsuits filed in this country are lawsuits over contract disputes. If you have a contract dispute or if you see one coming, call for a free consultation.
Personal Contract Litigation
- Breach of Contract
- Intentional Interference with Contractual Relationship
- Partner Agreement Dispute
- Landlord/Tenant Dispute