Articles Tagged with Agreement

photo-employment-contracts-300x204A contract is a legally binding agreement that spells out the rights and responsibilities of both parties. Employment contracts are becoming more common, especially as employers become more concerned with protecting their intellectual property and seek to channel any employment related disputes away from the courts and towards arbitration.

How far your business wants to take this is up to you. You could have all or none or your employees sign contracts or you may just target management or those whose departure may be particularly damaging to your operation if they decide to work for a competitor or start their own competing business.

On the plus side,

photo - cutting strings on loanIf you get a loan that needs to be used for one purpose, but you would really like the money to cover over things, you act on your desires at your peril especially if it involves fraud or deception. If you cut the strings that come attached to a loan expect to get tangled up in conflict with the lender at the very least and possibly on the wrong end of a lawsuit at the worst.

A movie studio is accused of misusing funds from a loan and the lender has hit it with two lawsuits, according to Variety. New York based finance company RKA Film Financing has sued Relativity Media CEO Ryan Kavanaugh accusing him of being a “con man…who through dishonesty and deceit operated a scheme to defraud investors and convert and misappropriate their funds.”

These allegations were contained in a lawsuit filed nine days after RKA filed its first legal against Relativity seeking to recover $7.5 million loaned to Relativity. The second lawsuit goes much further than the first, which claimed the loan is in default and needs to be repaid. The second charges Kavanaugh with fraud and inducing victims “to invest hundreds of millions of dollars to prop up a failing entertainment company.” It seeks $90 million in damages.

The second lawsuit claims RKA loaned about $7.5 million to Relativity to be used only for print and advertising expenses on specific films. It alleges, Continue reading

photo - contract signers by Dan MoyleAn easy way to get sued is to violate a contract. That can be very easy if you sign a contract without reading or understanding it, making it that much more likely you won’t comply with its terms. If you agree to a contract you don’t understand, you could commit your company to spending all kinds of resources in ways you never imagined.

In a piece on LinkedIn Maryland author and real estate attorney Jack Garson described a meeting he had with one of his clients, one who is normally confident but that day appeared to be near tears and panic stricken. He brought with him a copy of a contract and a copy of a lawsuit, one in which he was the defendant. Garson read the lawsuit.

Next, I reviewed the contract. Now I understood my client’s new emotional state — especially the panic part.

“Did you read this contract?” I asked, ever so gently, as my Humpty-Dumpty client teetered in front of me.

“No,” he replied.

“I’m just curious. Why didn’t you read the contract?”

“The other side said it was standard. Plus, I was in a hurry.”

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photo - read the contract (by Martin)Whether oral, implied or written, businesses couldn’t exist without contracts. Whether you want others to be bound by your contract or another party has one for you to sign, you need to fully understand contract language and its possible implications. You don’t want to find out about a clause or a section that’s contrary to your interests when something goes wrong after you’ve signed the contract.

Don’t Guess. Find Out What the Contract Means and How It May Impact You.

If you don’t understand certain language, maybe you fear looking stupid or the cost of having an attorney review it. When it comes to contracts, there is no such thing as a stupid question (only a stupid answer). The cost of reviewing a contract is probably less than you might imagine and A LOT less expensive than having something go very wrong after you’ve signed a contract you don’t fully understand.

Paying for an attorney to review contract language (whether it’s a contract you want to create or the other party’s contract) is like paying for insurance. You have homeowners insurance though in all likelihood your house won’t burn down or be split in half by a falling tree, but it’s a very sensible thing to have in case those events actually happen.

Language in a contract may be very fair and comply with applicable laws, but since you’re not an expert in contract law what you think you know about the contract is actually only a guess. You shouldn’t risk your business based on guesses. You wouldn’t lease property based on what you think will be the monthly payment or your hunch on where you think the property is located. Don’t make the same mistake with contracts.

Once You Sign It, It’s Yours

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