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business contract mistakes

Are You Commingling Multiple Businesses?

By Business Contracts, Business Lawyer

If you own multiple limited liability companies or corporations are you commingling the businesses?

If so, you expose these ventures to unnecessary legal dangers.

For example, a court might decide one company is the alter ego of the other and hold both of them liable in a lawsuit. Instead walls of protection, you’ve let down the drawbridge and invited in plaintiffs to raid all of your companies.

So, how do you avoid this commingling danger?

Treat them as separate companies.

For instance, don’t raid the bank account of Company A to pay Company B’s expenses simply because the latter is short on cash.

And when the entities do business with each other, use written contracts that explain the rights and duties of each entity under the agreements.

For example, if Company A wants to advertise on Company B’s website, there should be an advertising agreement in place where B gets compensated somehow by A for running the ads. No freebies from one company to the other simply because you own both.

What about intellectual property? If one company owns the IP, but you want both companies to use it, chances are you’ll need some type of licensing agreement between one entity as owner (licensor) and the second entity as licensee.

An experience business lawyer can help you put the right documents in place to protect your multiple businesses from improperly commingling. And if you’ve already been commingling, he can help you fix the situation to minimize the legal risks.

How to Avoid King Charles’ Fishy Mistake in Your Business Deals

By Business Contracts, Business Lawyer

old business contract in scroll formOnce upon a time, a Prince Charles lived in exile while the Cromwells ruled England. Having enjoyed his time in Belgium, Charles repaid the country for their help when he took the throne.

Perhaps the king had a moron for a lawyer. Or his legal counsel was too afraid to question the king’s decisions.

Because King Charles II signed an agreement in 1666 that gave Belgium the right to have 50 fishermen use English waters “for eternity.”

Let’s just say that “eternity” is not something you typically want to include in your business contracts.

Because 300 years later, the Belgian government demanded England honor the contract. And the British gave in because it was a binding agreement.

In fact, there’s a Belgian politician going on TV these days to show the agreement. He’s taunting the British with it.

Of course, you might wonder how this applies to your business.

Here’s what’s important to know…

Part of running a company (or a country for that matter) is having systems in place that serve your interests.

And one of the first places to start is to get an experienced business lawyer to prepare contracts that help you succeed.

Because even if the term isn’t for eternity, it can seem like forever if you’re stuck in a bad agreement that’s costing you time and money.

And with the holidays about to kick in, now is the perfect time to get your business set up to start 2021 on the right foot. If you need a new contract prepared or an existing agreement improved, let’s talk.