If you go into business for profit with someone, and if you don’t create a company like a corporation or an LLC, then your business automatically will be a partnership. However, a partnership does not give you any asset protection — you are 100% liable for the debts of the business — and it also gives each other partner the power to sign a contract that legally binds the business, even without your permission or knowledge.
Please visit the latest issue of Valley Business Front March [PDF link] for Keith Finch’s latest legal perspective on business pitfalls.
And if you’re interested in learning more about how to choose the right type of entity for your business, join us at our next round of Shark Bites this month.
We previously have discussed which contracts require a writing to satisfy the Statute of Frauds. Here, in part three of this series, we examine some exceptions to those rules. Continue reading “Has There Been Performance Such That My Contract No Longer Needs to be in Writing to Comply with the Statute of Frauds?” »
(A version of this article previously appeared in the Valley Business Front.)
The CEO’s voice was controlled, but I could sense the panic underneath. He was about to crack. It sounded almost like he might even start crying.
“We have paid a total of more than one hundred thousand dollars for that web site over the years!” he said, his voice quavering with anger. “And now the developers won’t even give us a copy of it. I want you to sue them tomorrow. I want justice!” he said.
“Whoa, whoa, OK, yes, justice, of course,” I said, “but before we start a lawsuit, let’s figure out what they’re thinking, from a legal perspective. Do you have a written contract with this web site company?”
He did have a written contract. He sent it to me. It was about four pages long and mostly detailed all the various types of work that the developers were supposed to do on the web site.