A business lawyer is an essential member of your team who helps you avoid costly mistakes while steering you toward the best decisions to help you grow your company. Part of doing this involves drafting and reviewing the contracts necessary to run your business.
When two or more people decide to go into business together, a partnership contract is essential. This formal, binding document:
- Defines each partner’s role
- Establishes each partner’s compensation
- Determines dividend distributions
- Determines how partners may exit the business relationship
- Establishes who can join the partnership
Working with a business lawyer who can draft and review a partnership contract will prevent vital omissions and vague language from causing potentially insurmountable disputes that force a partnership to dissolve.
Employment contracts are among the routine yet labor-intensive agreements that require a business lawyer’s input. These documents should include various categories, including performance expectations, attendance requirements, time-off eligibility, description of benefits, termination policy, chain of command, and conflict resolution steps. A business lawyer will ensure that every employee contract has as much clarity and detail as possible because it can be instrumental in preventing employee-initiated lawsuits.
Employees who leave their jobs to pursue new opportunities in the same industry may take a wealth of confidential information with them about a former company’s business practices, clientele, vendor relationships, or finances. Companies can limit their exposure due to departing employees by making their employment conditional upon signing non-compete agreements.
Many business owners do not understand the enforceability of these agreements. They tend to write overly limiting ones that force the court to dismiss them automatically, rendering them useless. A business lawyer knows how to strike the right balance to uphold former employees’ rights while protecting companies’ interests.
A business that leases office space needs a business lawyer to review the terms of a commercial lease to ensure they are fair. Most commercial leases are many pages long, and an untrained eye can miss clauses that could lead to significant financial losses. For example, a lawyer can point out hidden unfair charges, remove personal guarantees, or determine potential areas for negotiation.
Most businesses are dependent on the goods and services they receive from their vendors. Any interruptions can cause severe operational challenges and revenue loss. As our business litigation lawyer friends from Mughal Law Firm often explain, having a contract with a vendor can spell out how, when, and where a business receives purchases and identifies payment and cancellation terms.