Continue reading "5 Common Reasons Business Partners End Up in Disputes"
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]]>Unfortunately, even with this and related documents in place, business partner disputes can arise for a variety of reasons. They often stem from disagreements, misunderstandings or conflicts of interest between the partners. Some common causes of business partner disputes include those listed below.
Lack of effective communication can lead to misunderstandings, misinterpretations, and ultimately, disputes. Partners may not fully understand each other’s expectations, goals or strategies.
Differences in financial management, spending priorities, profit distribution or compensation can create conflicts. Unequal financial contributions or perceptions of unfairness can also contribute to disputes. If one partner invests more in the company and earns the same amount, for instance, it could lead to a dispute even though earnings are even unless clear expectations are established from the outset.
Conflicts can arise when partners have differing opinions about their respective roles, responsibilities and decision-making authority. Unclear delineation of duties can lead to confusion and disputes. This is why one of the most important things to address in a partnership agreement is what roles each person will assume.
Disagreements over major business decisions, such as expansion plans, investments or changes in direction, can lead to disputes if partners have conflicting visions for their company’s future. Each partner should, ideally, feel like they are working together toward the same vision for the company.
A lack of trust between partners, whether due to previous conflicts, perceived lack of commitment, or concerns over financial transparency, can contribute to disputes. When trust is broken, it’s hard to rebuild.
To minimize the risk of business partner disputes, it’s essential to establish clear roles and responsibilities, set expectations, maintain open and transparent communication and have a well-defined partnership agreement that outlines how conflicts will be resolved.
Ready to resolve your partnership disputes effectively and efficiently? Trust in Massey Law Firm. Our seasoned partnership dispute lawyers bring extensive experience and a proven track record of success. We’re dedicated to understanding your specific needs and achieving favorable outcomes for you.
Don’t hesitate. Contact us today for a consultation. Let us provide tailored legal strategies, clear communication, and collaborative support. With Massey Law Firm, you’re not just a client; you’re a partner in your path to resolution.
Choose Massey Law Firm as your partnership dispute lawyer and take the first step towards a successful resolution.
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]]>Continue reading "Recapture clauses: A guide for commercial landlords"
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]]>One crucial element of your profession worth understanding is the value of a recapture clause in your leases. A recapture clause is a provision commonly included in many commercial lease agreements. It provides landlords with the option to terminate an existing lease prematurely and retake (or “recapture”) possession of the leased property under certain conditions. This gives you the opportunity to seek out a new (potentially more lucrative) tenant of your choosing.
A recapture clause typically comes into play when specific pre-defined conditions, known as triggering events, occur. The specific triggering events that activate a recapture clause may vary depending on the terms negotiated between the landlord and the tenant. However, some common examples of triggering events include:
By incorporating a well-drafted recapture clause into your lease agreements, you can look after your interests, maintain your property values and explore new opportunities that match your long-term objectives. Seeking experienced legal guidance can help you draft lease agreements that are fair to your tenants while still protecting your bottom line.
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]]>Continue reading "2 Legal Issues That Commonly Affect Construction Contractors"
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]]>Unfortunately, some of them end up embroiled in legal disputes. Sometimes, a contractor or construction firm executive will need to pursue a lawsuit. Other times, they may need to defend against a claim. These are two of the most common reasons that contractors and other construction professionals end up in civil court.
There is a bit of tension in the relationship between a contractor and a client. Clients want to keep costs as low as possible while getting the highest quality work that they can. Contractors want to ensure they receive fair and appropriate compensation for the services they provide and full payment in a timely manner. Sometimes, people never pay what they owe for construction work, which can lead to litigation. Ideally, the professional will have a written contract and record of the work they performed. They may need to seek a mechanic’s lien against a property or engage in other collection efforts when a client does not pay for services rendered. Texas law allows contractors and material providers to seek a lien so that a client must pay them in full before selling or refinancing the property.
Construction defect claims can lead to expensive litigation or insurance payouts. Professionals may face claims from property owners over everything from allegations that they substituted materials to deviations from the timeline and estimated budget originally negotiated. Thorough business records and contracts can help defend against such allegations.
Construction-related litigation often proves expensive and can potentially damage a professional or firm’s reputation. Knowing the more common reasons construction professionals end up embroiled in litigation can help to inspire them to seek legal guidance in order to better protect themselves when negotiating contracts and communicating with clients.
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]]>Continue reading "What options do you have to end a business partnership?"
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]]>Without an agreement in place, you and your business partner will have to explore other options. Here are three potential courses of action you can take:
If the business is still viable and one of you simply wants out, a buyout might be feasible. One option for ending your partnership is a buyout. That means one of you would buy the other’s share of the business. This is only possible, of course, when you can both agree upon the price and one of you has the necessary financial means.
If neither of you wants to keep the business or there’s no financial possibility of arranging a buyout, you and your partner may agree to put the business up for sale. Then, you would divide the profits (or losses) between you. It’s crucial to ensure that the sale price is fair and to have a plan in place for dividing the proceeds or remaining debts.
If you and your partner cannot agree on a buyout or sale, the partnership can be dissolved. This means that all dealings will be wound up, dissolution documents will be filed with the state, the final taxes will be paid and the business will be closed. Then, the remaining assets and liabilities will be divided between the partners. This option can be complicated, particularly if the business has significant assets or liabilities, including things like real estate and investments.
Ultimately, all of these solutions require a certain degree of cooperation between business partners to work, and that may not be feasible if you and your partner have had a significant breakdown in communications. In those situations, you may have to take legal action to force either a buyout or a dissolution of the partnership so that you can move forward.
Ready to resolve your partnership disputes? Massey Law Firm is here to support you. Our experienced partnership dispute lawyers are dedicated to your success. With a proven track record, we’ll provide tailored strategies to address your unique concerns. Don’t wait; take the first step toward a favorable resolution. Contact us today to schedule a consultation and partner with us in finding the best legal solutions for your partnership dispute. Your path to resolution begins with Massey Law Firm.
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]]>Continue reading "New FTC rule proposes ban of non-compete agreements"
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]]>Its proposal also states that non-compete agreements reduce wages for workers, including those not bound by these clauses.
Within the proposal, the FTC specified that the rule would not apply to other types of restrictive covenants, such as non-disclosure and non-solicitation agreements.
If the rule goes into effect, employers must rescind all non-compete clauses from their employment contracts with employees and notify all workers that the clause is no longer valid.
This would be a significant change to existing law, and it is already making waves in the business community due to the potential implications that such a change could result in.
Businesses, especially large-scale businesses, benefit from these agreements because they can lock down sectors of the labor pool and minimize competition. On the other hand, these restrictive covenants make it harder for smaller businesses to enter the market and compete with larger companies.
The FTC argues that employers should do a better job at explaining what non-competes mean, and labor advocates argue that these clauses harm employees by locking them into the company they work for and making it challenging for them to take their talent elsewhere, particularly competitors.
The proposal was open for public comments until April 19, 2023. The FTC promotes competition in the market, aiming to protect and educate consumers on antitrust issues.
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