In an efficient business partnership, the partners complement each other’s strengths and compensate for each other’s weaknesses. Together, the partners are able to accomplish more than they could alone. This is the type of partnership that every entrepreneur hopes for. However, quality partnerships like these do not happen by chance. If you are thinking of forming a partnership, it is up to you to research your options, vet potential partners, and avoid key mistakes that could increase the chances of a dispute. Most importantly, work with an experienced business law attorney.

Vet Potential Partners Thoroughly

When starting any business relationship, it is important to avoid naivety. Research potential partners and encourage potential partners to do the same for you. It is important to remember that the way people act around their friends is not necessarily indicative of how they will act in a business setting. Do an Internet search on your potential partner for past bankruptcies or lawsuits filed against him or her and contact his or her references. It may also be in your best interests to hire a professional firm to conduct a criminal background check.

A noncompete agreement, also called a “covenant not to compete,” is a contract that business owners often ask their employees to sign upon employment. Many people underestimate just how important this particular type of contract can be. A noncompete can help you protect your business from unfair competition and ensure that your employees do not use the information and practices they learned through you to undermine your business. However, noncompete clauses must meet certain criteria to be legally enforceable in Connecticut.  This is one reason why it is so important to have an experienced business lawyer review any employee contract for weaknesses or flaws.

How Can A Noncompete Benefit Me?

If you are like most business owners, you have probably put countless hours into your business. You may have honed your business strategies, pricing, sales techniques, marketing campaigns, employee policies and procedures, and other aspects of your business to be as efficient as possible. Even if you still have business goals and personal aspirations that you have not yet achieved, you are most likely closer to those goals now than you were when you first decided to start your company. A noncompete agreement helps protect all of this hard work from being used to benefit a competitor. When an employee signs a noncompete, he or she is agreeing not to work for a competing business for a certain period of time after leaving your company. This prevents the employee from using knowledge about your business to benefit a competitor or even to start his or her own competing business. Noncompete agreements may dissuade employees from leaving your company for a similar position at another company. They may also deter competitors from attempting to steal your most successful employees.

Although more and more companies are conducting business virtually these days, the location you choose for your business can have significant consequences. Your location has the potential to literally make or break your business. Choosing the wrong location can lead to financial problems, legal headaches, and fewer customers. However, many entrepreneurs and new business owners underestimate the importance of choosing the right business location. When deciding where to headquarter your startup, make sure to consider the following tips.

Focus on Increasing Customer Accessibility

You have probably already spent a great deal of time thinking about how to price your products and services. However, have you considered how accessibility could impact your profitability? Many shoppers are willing to pay slightly higher prices if a store or business is easy to get to or adjacent to an establishment they are already planning to visit. When choosing a location, consider how many of your customers will arrive on foot versus the number of customers who will drive. Make sure not to forget about parking concerns.

Business contracts are an integral part of a successful entrepreneurial career. Whether it is a purchase order, bill of sale, employment contract, lease agreement, or another type of contract, knowing how and when to use contracts is a vital skill. When a party subject to a contract violates any of the contract’s terms and conditions, the violating party may face a breach of contract claim. The party wronged by the violation may be entitled to damages. As a small business owner, writing clear and effective contracts with help from an experienced business lawyer is one of the best ways to avoid facing liability for breach of contract.  

Failure to Fulfill the Requirements of a Contract

There are several different types of contract breaches. A minor breach of contract is one that involves non-fulfillment of a minor detail in the contract. These breaches do not impact the overall purpose of the contract and are typically able to be resolved outside of court. An anticipatory breach or anticipatory repudiation occurs when the breaching party notifies the non-breaching party that it will not be satisfying the terms of the contract. A material breach of contract is one that is so significant that it prevents the parties from being able to execute the responsibilities contained in the contract. Anticipatory breaches and material breaches often lead to legal actions.

If you are currently a Connecticut business owner or soon will be, you probably already know that business contracts are an integral part of a successful business. Whether you are creating a partnership agreement, non-compete agreement, financing agreement, bill of sale, employment contract, or another type of business contract, you need to ensure that the contract is effective and enforceable. Seemingly minor mistakes can lead to major misunderstandings and contract disputes. This is one reason that it is always a good idea to have business contracts reviewed by a qualified business law attorney.

Assuming That a Verbal Contract Will Suffice

In an ideal world, we would not need business contracts. A person could simply be trusted to keep his or her promise. Unfortunately, this is not how the business world works. Informal agreements and casual contracts are ineffective and extremely difficult to enforce. You have probably poured a great deal of time and energy into your business. You need to know for certain that your business is protected if a partner, vendor, or contractor fails to keep their end of the bargain. Well-written, clear, enforceable contracts are the only way to protect your business in the event that a party breaches the terms of a business agreement.

Effectively using business contracts is an essential part of growing a successful small business. A non-disclosure agreement (NDA), also called a confidential disclosure agreement or confidentiality agreement is a contract that prohibits the participating parties from sharing sensitive information. Business owners may use NDAs when disclosing confidential information to employees and consultants, during business sales or purchases, and when meeting with potential investors. However, a non-disclosure agreement is only beneficial when it is executed accurately and does not contain major mistakes. This is why it is best to work with an experienced business lawyer when drafting non-disclosure agreements and other types of business contracts.  

The Basics of Non-Disclosure Agreements

In an ideal world, a business owner would be able to simply ask an individual not to share the sensitive business information to which he or she is privy. Unfortunately, this is not how business dealings work in the real world. The best way to prevent confidential information from being used against a business is to have the party receiving the information to sign a legally binding confidentiality agreement. A business owner may use an NDA to protect:

Business ownership comes with many privileges. As a business owner, you become your “own boss” and get to decide how your business is run. Deciding to buy a business, however, is not a decision to take lightly. New business owners who are unprepared or who do not have dependable legal guidance can fall into major financial and legal pitfalls. If you are considering purchasing a company, you may be wondering whether you should buy a franchise location of an existing business or a standalone business. The answer to this complicated question will depend upon several factors. That is why it is crucial to hire a knowledgeable business attorney to guide you through this important endeavor.

Consider the Differences Between Standalone Businesses and Franchises

The biggest difference between a franchise and independent business is the amount of control and authority the owner has over his or her business. If you buy a franchise, you will likely have a great deal of control over day-to-day aspects of your business, but you may have little input on “big picture” concerns. The franchisor will likely decide the types of products and services the business offers, the business hours of operation, pricing, marketing strategies, and more.

Well-written business contracts are essential to a company’s success. Although business transactions would likely be much simpler if parties could simply be trusted to keep their word, this is unfortunately not how the business world actually works. Entering into major business agreements without a legally binding contract can be disastrous. Business contracts are used to formalize employer-employee relationships, purchase agreements, loans, and for a wide range of other purposes. When a party violates the terms of a valid business contract, the injured party may file a breach of contract claim. There are several remedies to a breach of contract claim that the injured party may be entitled to, depending on the circumstances.

Collecting Damages or Restitution Through a Breach of Contract Claim

The main remedies for breach of contract include monetary damages, restitution, specific performance, rescission, and reformation. Damages refer to the compensation that an injured party may recover through a breach of contract claim. When a contract is completely breached, the injured party, or plaintiff, may receive damages equal to the value he or she would have received if the defendant had honored the contract. If the contract was partially breached, the injured party may be awarded partial damages. Restitution is another remedy that intends to restore the injured party to the condition he or she was in before the contract was signed. Instead of being compensated for lost earnings, the goal of restitution is for money or property that was given to the defendant to be returned to the plaintiff.

Similar to any purchase in life, the acquisition of a commercial business is a major process that requires every detail to be examined. Due to the nature of a commercial business purchase, both the buyer and seller should seek legal representation to ensure that their rights and interests are protected. In some cases, an ill-advised contract may place one party in a compromised position. Throughout the purchasing process, the individual who is looking to obtain a business should carefully review every aspect of the contract. The acquisition of a commercial enterprise can be a relatively simple process if the arrangement is fair and by the books. 

Financial Risks

To ensure that your financial interests are protected throughout the purchase of a commercial business, it is critical that every detail be considered and reviewed. For example, understanding the positives and negatives linked to the business is a good indicator of where the price should be set. Factors such as location, gross profits, operational concerns, the possibility of growth, liability issues, economic downturns, and leasing agreements need to be considered. In addition, the amount of time and effort that will need to be allocated toward the business should also be included in the evaluation process. A business that is struggling to make a profit should be appraised differently from a company that has a positive cash flow.    

Business dealings often involve the exchange of highly confidential information. A non-disclosure agreement (NDA) is an effective way for business owners and entrepreneurs to protect sensitive information from being shared or misused. An NDA is a legally enforceable contract that establishes a private relationship between two or more parties. The involved parties agree not to share or profit from confidential information to which they are made privy. NDAs, also called confidentiality agreements, are a valuable tool for businesses.

Non-Disclosure Agreements For Business Negotiations

Non-disclosure agreements can be used to protect sensitive information that is shared during business transactions, such as the buying or selling of a company. For example, if a business owner is interested in selling his or her company, he or she will almost certainly meet with potential buyers to discuss the business in detail. A potential buyer may have access to proprietary information, product designs, marketing strategies, trade secrets, business practices, and other information that could be used as leverage in other business dealings. Asking a potential buyer to sign an NDA prevents the buyer from misusing sensitive business information or sharing that information with others. If a party signs a confidentiality agreement and then violates the terms of that contract, the injured party has the right to seek financial compensation for breach of contract.

The two most common types of NDAs are unilateral NDAs and mutual NDAs. A unilateral NDA is a contract where only one party agrees not to disclose sensitive information. In a mutual NDA, all of the parties involved agree not to share certain confidential information.

Ideally, everyone would honor verbal promises or handshake agreements. Unfortunately, this is not the reality of the business world. Legally binding contracts are often needed to ensure that parties stay true to their word. When a party does not meet the expectations of a contract, you may choose to take legal action in the form of a breach of contract claim.

Three Main Elements

A contract can be thought of as a legally enforceable promise. Contracts vary significantly in their scope and complexity, but all contracts define certain rights and responsibilities for the involved parties. When one of the parties in a business contract fails to fulfill his or her responsibilities, the other party or parties may pursue a claim for breach of contract. There are several elements that must be present in a breach of contract lawsuit in order for the plaintiff to be awarded restitution. To win a breach of contract claim, the plaintiff will need to demonstrate the following:

Becoming a business owner can be one of the most meaningful career moves of your life. Owning your own business allows you to control how your business is run, decide how your employees are managed, and steer the business in the direction that you want. When buying a business, potential owners have two options: purchase a standalone business or a franchise location. There are both positives and negatives associated with purchasing a franchise business. It is important for anyone considering such a big purchase to research what owning a franchise business entails.

Franchised Businesses Have an Established Business Model

When a business becomes very successful, the owner may choose to franchise the company. This allows other private owners to purchase the rights to operate a franchise location of the larger parent company. Many first-time business owners find the option of buying an existing franchise location especially attractive. Unlike buying or starting an independent business, you will not need to create a business model from scratch when purchasing a franchise. An effective, reproducible business model already exists. In many franchise purchases, formal training from the parent company and ongoing support are also available. Of course, if you are someone who desires a great deal of freedom in how your business is run, you may not wish to be confined by a parent company.

In all business relations, a contract should be written to ensure that all parties complete their end of the deal. Some businesses trust verbal agreements; however, those types of agreements are not always legally enforceable, as there is no written consent to back up a claim. While a contract does require agreement from both parties, it also creates formal obligations that can be enforced if necessary, while a verbal agreement does not. Regardless of your relationship with the other party, a legal contract is important to avoid future conflict and eliminate any gray areas that may exist.

Business Contract Necessities

Business contracts have elements that are required to make them eligible and enforceable in court. Much like marriage vows, business agreements have requirements that relate to the parties signing the contract and the agreement itself.