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Are your internal business contracts exposing you to unnecessary risks?

On Behalf of | Oct 20, 2022 | Business Consulting & Advice |

A well-structured business will typically create a contract for any agreement to ensure their business runs smoothly — and that includes internal agreements with their employees, partners, shareholders and others. These generally outline what business owners expect from their people, the role they play in the workplace and what they can expect in return for their contributions.

The most important thing to know is that well-drafted contracts and agreements can help avoid legal battles. Boilerplate contracts that are found on the internet or provided by lawyer friends or acquaintances who only dabble in business law are not sufficient. 

Provide detailed responsibilities and expectations

Every internal agreement should be detailed, planned and clearly understood. Failure to think through and memorialize issues such as taxes, job descriptions and duties, buy-sell options and voting rights can break your company. This applies to:

  • Shareholder and operating agreements
  • Employment contracts
  • Partnership agreements
  • Buy-sell agreements

Non-compete agreements and trade-secrets

Your business may have something special that your competitors don’t have. But how do you protect your trade secrets when employees, co-owners, former partners or shareholders leave? 

Establishing who owns the rights to creative efforts developed within your business should be established well before the ideas are brought to light. Non-compete clauses may prevent workers and former business partners from leaving and handing trade secrets over to a competitor. With the right counsel, there are a myriad of issues that you can address before they become potential problems.

We can help ensure your internal and external contracts and agreements don’t have holes that leave you exposed. Contact us to schedule a consultation.