Running a business includes signing contracts and legal agreements to secure various aspects of the business with binding language. Contracts will govern many relationships and outline certain responsibilities for each party.
Any corporate attorney will tell you it is vital to know and understand your legal liabilities before signing a contract. With the help of a Sacramento contracts lawyer, you may ensure that you understand your commitments and the remedies for a variety of scenarios.
Your business may enter into many different contracts that govern both your internal processes and your relationships with other people and businesses. From the creation of a legal entity, legal agreements factor heavily into how the business will exist and develop over time.
A partnership, limited liability company, or corporation usually has an agreement between owners (partners, members, and shareholders, respectively) detailing how the company will be run. Agreements may set out percentage interests per owner and specify whether a majority of voting interests or a supermajority may be needed to take certain actions, such as hiring managers or selling the business as a whole.
Beyond contracts between your business and its representatives at its formation, a business may enter into contracts with external parties, beginning with employees and independent contractors. For a business to function, it usually needs humans to provide services and labor, and contracts will provide the terms of how those people will provide that value.
Where your company will do business—whether physical or electronic—may also require a contract. Renting or owning office space may include a commercial lease or purchase agreement, and hosting your company’s website or data cloud may result in a services agreement with an internet provider or platform.
For each of these contracts, an attorney could work with a Sacramento business to review its active agreements and map out the contracts that may be necessary in the future.
As a business owner, you should always consult an attorney before signing a contract, even if the agreement’s terms seem normal and reasonable. A lawyer’s legal training and experience could ensure that your business agrees to fair and equitable arrangements.
When drafting your corporate governance agreements, an attorney could talk through your concerns and preferences, creating protections for each owner or partner and keeping your business running smoothly. For external contracts, an attorney could discuss your business’s tolerance for risk and preferred methods of dispute resolution, such as arbitration or claims in court.
Your business may also need insurance, whether to cover your office space or damages coming from the execution of a services agreement. An attorney may explain various insurance provisions—such as casualty events and forces beyond your business’s control—and provide recommendations to discuss with your insurance provider before entering into an agreement.
On a mechanical level, an attorney could also make sure that you know when your business needs to renew or extend a contract, collecting all of your active agreements in one place. If you do not have an in-house legal department handling your business’s contracts, an attorney in the Sacramento area could ensure your company’s contract issues are considered and planned for before negative impacts may occur.
Contracts are often made up of dense paragraphs of legal language and can be challenging to comprehend. An attorney could help you understand that language and enhance it to protect your business’s interests. Speak with a Sacramento contracts lawyer at Business & Real Estate Law Firm PC today.
Business & Real Estate Law Firm PC.
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Business & Real Estate Law Firm PC
1104 Corporate Way,
(916) 205-0320
