Cleveland Business & Commercial Law Blog

Whether you are just designing the structure of your small company or you have been in business for some time, it is critical to ensure your business contracts are legal and valid. In you day-to-day business, you may be involved in creating and accepting a number of contracts. Contracts are initiated to document that a transaction has taken place. Both verbal and written contracts may be valid depending on the circumstances of the transaction. 

One of the most important factors to ensure a contract is valid is that all parts of the agreement are accepted by both parties. For example, if you are looking for a company to assist you with marketing, they may offer you a contract describing the terms of the services they offer, as well as how much they will charge for those services. If you accept, you will sign the contract and allow the company to begin the work. If you challenge any of the terms listed in the contract, you may wait to sign and further negotiate the terms. If either party does not accept the terms of the contract, the document will not be signed and is not considered valid.

For business owners, litigation can present various challenges, from those which are financial (legal costs, fines and a decrease in business activity following a lawsuit) to a damaged reputation. The mental and emotional side of business litigation should not be overlooked, either. A business owner may find themselves extremely stressed out leading up to a lawsuit, during litigation and even afterward. Aside from stress, other negative emotions are not uncommon, such as struggling with depression or even feeling angry or betrayed. It is essential for business owners to address these emotional challenges properly and focus on their company's future.

Unfortunately, a certain amount of stress is inevitable when it comes to business lawsuits. That being said, some cases are especially difficult in this regard, whether there is a lot at stake, or the litigation involves a key business partner, an issue that is receiving a lot of attention in the media or a case which could significantly damage a business' reputation. For example, someone who runs a company may fear that an unfavorable outcome in court could cause many of their customers to take their business elsewhere, ultimately leading to the closure of their company.

Some law firms hold out to the public that their attorney team engages routinely in truly comprehensive real estate-linked legal matters. And, indeed, some firms do devote extensive time and resources to resolving challenges and promoting opportunities in the complex real estate universe for diverse and valued clientele.

Others, well, dabble. In doing so, they test the accuracy of what actually comprises “full service” for clients justifiably relying on their subject-matter knowledge and applied acumen.

Business lawsuits can arise for a myriad of reasons, and this topic has been discussed in detail on our blog. Lawsuits which involve staff members are often especially tricky and there may be so much at stake. Not only do business owners have to worry about the financial penalties associated with these suits, but the outcome of a case involving an employee (or a group of employees) could influence other workers’ decisions in different ways. Sometimes, additional staff members may decide to take legal action following a co-worker’s lawsuit. As a result, it is crucial for business owners to prevent these lawsuits, when possible.

Whether your business is accused of wrongdoing involving overtime, non-payment of wages or other wage and hour violations, or someone who works for your company is considering legal action over allegations of racial discrimination or sexual harassment, the consequences of an employee’s lawsuit can be very damaging. In some instances, you may be able to clear up the misunderstanding and avoid a lawsuit by discussing the issue(s) with staff members. Unfortunately, communication does not always work, and litigation may be unavoidable.