This question should also be on your mind when you set out to form a partnership. The best way to protect your rights in a partnership is to have clear, written agreements. Your partnership agreement should specify whether and when a partner can be expelled or bought-out and the terms of a buyout or dissolution. If you are concerned...
Continue ReadingAccording to a new Michigan Supreme Court’s April 5, 2022 decision, corporate officers and directors can be sued directly for a breach of fiduciary duties. The unanimous opinion clarifies the existing law on whether an individual shareholder can file a lawsuit directly against officers and directors who breach fiduciary duties. What Was the Case About? Murphy v. Inman, 507...
Continue ReadingEmployment law can affect many facets of your business. As an employer, you need to be aware of laws pertaining to a number of things, including: Employer lawyers help protect businesses from legal disputes based on these employment laws. In particular, if your business is faced with any of the situations below, it may be a good time to...
Continue ReadingA buy-sell agreement is like a prenup for a business: it helps you determine what will happen if an owner leaves. No business partnership lasts forever. Inevitably, there will come a time when an owner needs to move on, either by their own choice or because of changing circumstances. If you are starting a new business or are concerned...
Continue ReadingCommercial litigation is a broad area of law that can involve many types of complex disputes. Any type of disagreement that can come up in a business context may fall into the category of commercial litigation. These issues are often more legally and factually complex than typical civil litigation issues. They are also more likely to involve multiple issues...
Continue ReadingMitigation of damages is a contract law concept that arises if a contract is breached. It means that the non-breaching party to a contract may be required to take steps to minimize their losses after the other party breaches the contract. Despite doing nothing wrong, a non-breaching party may have an obligation to not only avoid further loss because...
Continue ReadingPeople enter into small business partnerships based on a common interest and a common vision. But these halcyon days almost always pass and sometimes significant disputes arise. Conflict arises most frequently from disagreements on future course, a failure to uphold obligations, being “oppressed” as the minority owner, or one business partner acting in bad faith to harm the business....
Continue ReadingIf you have an LLC or corporation, you are likely concerned about protecting yourself from liability. After all, the purpose of these entities is to shield their owners from being personally liable for company debts. Unfortunately, while your LLC or corporation can help you avoid personal liability in most circumstances, there are situations where creditors or claimants of your...
Continue ReadingMany businesses have suffered financial strain in the wake of COVID-19. As a result, contracts that were made before the pandemic may be difficult or even impossible to fulfill. This makes things difficult for both sides of a contract. If you can’t fulfill your contracts, you may become embroiled in litigation and end up further in debt. If another...
Continue ReadingTrade secrets are an important part of any business. Some companies even take extreme measures to protect their trade secrets. For example, rumor has it that KFC moves its secret original recipe to a secure location via armored car and motorcade when it has to update its security systems. And Coca-Cola supposedly keeps its formula in a safe to...
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