How To Avoid A Business Divorce

Many people compare business partnerships to domestic ones, and it’s easy to see why. Just like marriage, a business takes a lot of dedication and hard work; and, breaking up can be hugely expensive. Business divorces can destroy a business and any assets you have spent years building. While business divorces are sometimes necessary and the best course of action, every effort should be made to avoid these costly breakups.

Start With A Solid Foundation

Businesses are built on relationships and more than just the relationship between partners. Businesses will have relationships with other individuals, companies, and vendors in order to operate. Every relationship (including partnerships) needs to be clearly and specifically defined in a well written and thorough contract. Contracts between business partners need to clearly define each person’s duties, roles, investments in the business, compensation, and expectations. When these are not clearly defined, partners can easily find themselves in complex disputes.

Contracts with other internal and external individuals and companies are also a common source of conflicts that lead to business disputes. Your relationships with employees, vendors, contractors, etc. will function best with specific contracts outlining the roles and duties. This ensures partners are on the same page about the relationships necessary for the business.

Don’t Hesitate To Talk To An Attorney

Most business owners make every effort to avoid an attorney’s office, but this is a mistake. Talking with an experienced business law attorney does not mean you are filing a lawsuit. Attorneys can also act as counselors to business partners, helping them understand the contractual obligations currently in place and advising them on the best path forward for the business, which does not have to include litigation. An experienced business lawyer will put the business’ interests first and provide legal strategies that preserve the business you’ve worked hard to build.

Houston Business Lawyers

At Feldman & Feldman, our Houston business lawyers understand litigation is not always the answer. If you’re looking for honest legal advice that will help your business grow and avoid business divorce, schedule an appointment with one of dedicated attorneys. We’ve helped scores of business partners resolve disputes that could have destroyed their businesses. You can rest assured we will help you protect your business.

Why You Need An Attorney To Draft Contracts

Many people conduct business without the help of an attorney. Oftentimes business dealings like transactions and agreements seem straightforward and simple to the layperson, but the reality is these matters have serious legal implications. Whether you are conducting business without a contract or are using a contract that was not drafted by an experienced attorney, you need to be aware of the risks you are facing.

Contracts Are Legally Binding

One of the many benefits of a well written contract is that it is legally binding. This means both parties will be responsible for holding up their end of the contract. Imagine what would happen to a business if a supplier stopped supplying crucial parts? The business would come to a complete stop. Contracts give both parties legal recourse when a contract is broken. Unfairly or improperly drafted contracts can bind parties to unfair terms. People that sign contracts before reading or without fully understanding them put themselves at risk of serious financial jeopardy.

Poorly Written Contracts May Not Be Enforceable

Some people may choose to write their own contracts or use generic contracts they find online, but these are fraught with problems. One of the most common problems with poorly written contracts is vague language. Contracts need to written with a level of specificity, which means generic contracts found online simply won’t do because vague terms are difficult, if not impossible, to enforce.

Poorly written contracts also often lack crucial provisions such as details on how to terminate the contract, compensation for breach of contract, and many others. Depending on your business and industry, many specific circumstances must be addressed in the terms of your contracts. If these items are not addressed, you could find yourself tangled up in costly and expensive litigation.

Houston Contract Lawyers

The Houston contract lawyers at Feldman & Feldman have extensive experience drafting all types of contracts for businesses within a variety of different industries. We can make sure your contracts are legally enforceable, outlines fair terms, and protect you from litigation. To schedule an appointment with one of our contract attorneys, contact us today.