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Houston Business Litigation Law Blog

What is a restraint of trade?

Texan business owners and entrepreneurs will have to deal with a number of hurdles as their business grows. Some may be easier to anticipate or handle than others, but they can all be a headache. For example, you might find yourself facing unfair situations that could actually restrict or damage your business.

Restraint of trade is one of these unfair practices. At its most basic definition, FindLaw states that restraint of trade refers to any activity that interferes with a business's ability to conduct everyday work as they usually would. As an example, if two businesses agree to fix a price that drives a third business out of the area, this is considered restraint of trade and is, in fact, an illegal practice.

Do I need to resolve my partnership dispute in court?

Running a successful business can be incredibly stressful, and if you have one or more business partners, there is a good chance for an eventual dispute. Disputes can arise from many charged issues, and may seem impossible to resolve. At this point, you may think that litigation is your only option, but is it?

Litigation can be a lengthy and expensive process. Additionally, a lawsuit between business partners may strain the relationship beyond repair. Fortunately, there are other resolution strategies that may end your dispute with less rancor and more overall benefits. What other tactics should Texas business owners consider before going to court?

Tips for strong business partnerships

The entreprenuerial spirit is at the cornerstone of many new business ventures in Texas. A new idea can involve a complete new product or maybe a new way of addressing a problem. Regardless of the type of business, it is not uncommon for people to pair up with others when creating a new company. However, also not uncommon is the failure of many business partnerships. Learning how to build a strong partnership is important for anyone choosing this option instead of going it alone.

Forbes explains that one of the first things someone looking for a business partner should do is identify their own strengths and weaknesses. This list could then be used to guide the process of finding a partner and that partner should have a very different set of strengths and weaknesses. When each partner brings a different set of skills or knowledge to the table, the overall package is stronger and there may be less chance that the two people will compete for control over a certain functional area of the business.

How do you handle a dispute with business partners?

Partnering with other people for business comes with both benefits and drawbacks. One of the biggest potential drawbacks is the possibility that you and your partners may not always see eye to eye on important things. These small disagreements may grow and can lead to an eventual dispute. Fortunately, Massey Law Firm is here to help guide you through these issues in a way that will keep your business safe.

Many different legal problems can arise because of disputes among business partners. Potential problems may include things like:

  • Fiduciary duty claims
  • Ownership interest
  • Issues related to voting
  • Violation of nondisclosure agreements
  • Breach of partnership agreements

How an NDA may help your business

If you are the owner, manager or executive of a company in Texas you will likely be interested in knowing how you can ensure your business' confidential information can be secured and protected. There may well be data that your competitors would love to have access to that you need to keep secret. You may also have regulatory requirements on what you can share with who, when and why. These are just some of the reasons you may want to develop and use nondisclosure agreements in a variety of situations including with some of your employees.

As the name implies, nondisclosure agreements include provisions about keeping certain information private. They are also often called confidentiality agreements for this reason. However, as explained by Forbes, the requirement to hold secret or not disclose certain information is only one part of what a good NDA may do for your business.

What is commercial disparagement?

When you work to build your business, it can be frustrating when someone can undermine your profitability with a few negligent words. If those words are, essentially, a smear campaign with no basis in fact, you may wonder what recourse you have to not only combat this issue, but recover damages from economic losses caused by a person, persons or entity making disparaging remarks about your business. So what are your options to pursue this in Texas courts?

You may have the potential to bring a case for commercial disparagement, also known as business disparagement. Disparagement is not to be confused with defamation; defamation involves affecting your reputation. Disparagement involves having a substantial economic impact on your business through derogatory marks.

What purpose does a non-compete agreement serve?

Navigating the legalities of running a business can be enough to give anyone a stressful time. This is why certain documents, laws, or aids exist to help you avoid some of the biggest pitfalls in business. Non-compete agreements can fall under useful tools, and when used properly, it might even protect your business in the future.

The Legal Dictionary defines non-compete agreements as contractual obligations signed by an employee that disallows them from acting in a way that would aid any competing business. The parameters of the contract can vary vastly from job to job. In some, for example, a worker might be disallowed from doing any other paid work in their current field. This might mean a photographer is unable to do paid photoshoots if they aren't sponsored by their company, or that a content creator can't work for two companies doing the same kind of content at the same time.

Understanding Texas noncompete clauses

It can be hard to sort out what’s valid and invalid amid the clatter about noncompete agreements. The facts say that nearly one-in-five Americans is party to such a contract, but many of those contracts don’t hold up in court. Employers want to protect their interests, and they are allowed to under the law in most situations. But employees, too, have rights, and sometimes it infringes upon the employee’s right to earn a living.

State law defines the terms

The basics of fraudulent misrepresentation

When you run a business in Texas, making contracts is just one important aspect of your work. Sometimes, though, you may encounter a situation when you established a contract based on information you later leaned was wrong. We at Massey Law Firm, PLLC, understand how important it is for you to know what to do if you find yourself in this situation.

Fraudulent misrepresentation concerns any type of falsehood involved in a business deal. FindLaw says that this misrepresentation can include situations when someone remains silent when you discuss a business arrangement, leading you to think that you both have the same understanding about the arrangement. This can also include times when someone says or writes wrong information. When you realize that someone misrepresented a business deal, you sometimes may simply choose to end the contract. While you might want the other company to compensate your business, this may not always be possible. You typically need to prove that your business was harmed because you trusted the other company's representation of a situation.

Have you been a victim of deceptive business practices?

Texan business owners just like you may sometimes rely on other companies to ensure that your business needs are consistently met. Unfortunately, this also means that you're sometimes at the mercy of third parties. Massey Law Firm is here to help you if you've been a victim of deceptive or fraudulent trade practices because of a business partner or supplier.

The Texas Deceptive Trade Practices Act, or DTPA, keeps both small businesses and consumers safe from harmful and deceitful business practices. If your business has fewer assets than $25 million, then the DTPA applies to you.

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Massey Law Firm PLLC
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Houston, TX 77007

Phone: 346-800-6101
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