Articles Tagged with being sued

When multiple individuals begin conducting business together, they may have effectively created a partnership, even if they didn’t intend to do so.  Thus, even though partnerships can be formed without the partners actually signing a partnership agreement, the partnership and its partners become subject to state laws governing partnerships.  The California business attorneys at Structure Law Group, LLP understand the laws and mechanics required to build a strong foundation for a partnership.  Being careful and meticulous about the partnership formation process can also help to prevent litigation if and when a dispute arises between and among business partners.

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Partnership Agreements

 Although not required under California law, as discussed above, entering into a partnership agreement when forming a partnership is highly recommended.  A partnership agreement is a legally binding contract that, among other things, dictates the roles of the partners and establishes guidelines for management of the partnership.  In addition, partnership agreements set out how potential legal disputes will be resolved.

Businesses are not immune to making mistakes, and many businesses will at some point be served with a lawsuit. Being sued is, without a doubt, very stressful. However, if you find yourself in this situation, you should ensure that you act in a manner that preserves your legal rights and positions while allowing for the best possible outcome. Here are some things that you should consider:

Seek Legal Assistance. Do Not Tackle Business Lawsuits Alone.Fotolia_77718062_Subscription_Monthly_M-300x201

Businesses faced with potential lawsuits may not fully consider the potential negative fallout that may occur as a result of the litigation. Some businesses may be very concerned with the expenses that would be required to defend the suit. However, do not make the foolish decision of not obtaining legal counsel.

Contracts are utilized in every type of business and every business owner should know that written contracts should be carefully drafted, reviewed, and negotiated before signing. However, not every business deal is memorialized in writing and many agreements are based on verbal interactions and a handshake. Just as with written contracts, legal disputes can arise over deals that were verbally made. When a disagreement arises, the first question is naturally: is an oral contract enforceable under the law?

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Whether an oral contract is enforceable depends on several factors. The law requires that certain types of contracts be in writing in order to enforce the terms of the contract. Some contracts that may apply to businesses that must be in writing involve the following:

  • Contracts for the purchase or sale of goods that are worth more than $500;

Many business owners do not hire an experienced attorney for several reasons. Some believe they cannot afford it and others may believe there is no need for a lawyer unless a legal conflict arises. However, it is much more resource-effective (time, energy, and money) to have the guidance of a skilled business lawyer from the very start. Doing so can avoid costly litigation in the first place and will allow you to focus on your business operations and not on a legal case. The following are only some examples of how hiring a business attorney can help to avoid litigation.

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Business contracts – Businesses involve many different kinds of contracts, whether they are with fellow owners, suppliers, clients, or any other party. You may not recognize that a particular contract has unfair or adverse provisions that may leave your business vulnerable to losses or liability. Every single contract you consider signing should be carefully drafted, reviewed, and negotiated by a knowledgeable lawyer to protect your interests and avoid legal liability.

Compliance with business laws – California has a great number of laws that are relevant to businesses, and compliance is essential to avoid costly fines or legal conflicts. Such laws can regulate business formation, licenses, permits, zoning, taxes, employees, and many other issues. As a business owner, it may be challenging for you to identify all relevant laws and to ensure that you comply with them. An experienced attorney will know what steps you need to take to comply with necessary laws.

Enforceable contracts that accurately describe an agreement between the parties are essential to any business, regardless of industry. Contracts arise in many relationships, including with partners, businesses, suppliers, employees, and client or customers, and a company of even moderate size could easily have thousands of contracts with various parties. For this reason, implementing a system to manage contracts and ensure compliance can significantly improve efficiency, improve compliance, and reduce the risk of incurring legal liability that can arise from contract disputes. In addition, an effective contract management system can help automate certain tasks, significantly reducing the risk of human error resulting in a costly dispute. Below are 4 ways in which implementing a contract management system can help businesses in every aspect of the contract lifecycle management process.

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  • Keep all contracts in a central repository – This benefit may seem simple, but consider the inefficiency involved in an employee searching through files upon files for a contract that may have been executed years ago. An effective contract management system can keep a copy of the contract itself while also summarizing key facts regarding the agreement in a way in which they are easily accessible to those searching.
  • Create a database of standard agreement and pre-approved substitutions – There is no need to reinvent the wheel every time your company enters into a new agreement. Creating a standardized contract for use in recurring situations as well as standard substitutions that are pre-approved for use can significantly improve efficiency in contract drafting and execution.

If you’ve just been served with a lawsuit summons, you must work quickly to ensure you don’t compromise any of your rights. There are firm deadlines when it comes to lawsuits and steep penalties for missing them. Here are 5 things to keep in mind once you’ve been served.

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What to do When You’ve Been Sued: 5 Things to Keep in Mind

  1. Don’t Go At It Alone

Consult an experienced attorney who can help guide you through the litigation process. Getting sued is naturally stressful and draining and having a seasoned professional by your side will put you at ease. A lawyer will be able to explain the claims against you and what they mean, and advise you of your options. Continue Reading