If you have just opened a new business, you may be working with a partner—or you may have multiple business partners involved, all bolstering your business up in different ways, complementing each other with different skill sets. Some of us enter into business with a partner because we have been working on a business idea with them for years; in fact, you may have even gone to grade school or high school with your business partner and the company you now own together may have been a lifelong dream as you created a particular product or service and collaborated throughout the years to refine it.
You may have inherited a family business and learned to adapt to working with business partners who were already there. You may have also brought in investors or promoted employees to partners due to their impeccable level of work and personal investment in the company.
No matter your relationship, and no matter how solid or friendly it may be from the beginning, a business contract is a must. Not only will this outline the most basic details of your business partnership – from who is involved, what their titles and duties are, including financial information and profit disbursement details—but you can handle some potential planning for the future that could be difficult or awkward to handle in the moment.
Mapping out dispute resolution clauses are one great example. At the time you are writing your contract, chances are you’re not angry or put out with each other, but should conflict or issues arise, you will already have an outline for how a dispute will be handled, whether in litigation, arbitration, or mediation, along with what county to meet in, and even who will pay attorney’s fees. Beyond that, however, there are other important issues to address in a contract, such as the exit strategy. This is again, a topic that can be difficult to handle at time, so with an outline already delivered in the contract, everyone knows what to expect.
With an exit strategy, you can make plans for nearly everything—from what happens if you decide to leave the company, if you die, if you get divorced, to discussion regarding mergers, buyouts, and more. Along with that, it can be critical to the health of a business to have a confidentiality clause that ensures all trade secrets stay where they belong: at the office.
Do you need legal assistance with a partnership or business dispute? If so, contact the Bolender Law Firm. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!
The Bolender Law Firm will advocate on behalf of clients through litigation, arbitration, or non-binding mediation. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!