Selling partnership shares often involves various considerations. In most partnerships, partners can choose to sell their share of the partnership to the partnership or a new potential partner as part of the resolution of a partnership dispute or simply because the individual or entity no longer desires to be part of the partnership.
Selling partnership shares will be governed by a partnership agreement, or if there is no partnership agreement, state law will govern sale of...
Varying circumstances may require parties to a contract to modify their original agreement. For example, contract modification may be necessary if parties want to extend a contract, change its duration, alter the quantity of goods to be sold or delivered, change a delivery time or place, or change a payment amount or type.
Parties typically can modify a contract at any time, as long as all the parties agree to the changes. Minor changes in a...
Many business are self-insured, meaning that they provide healthcare plans for their employees. However, because of the high costs associated with this practice, some companies have been paying employees with significant health issues to opt out of company medical plans and get coverage on the insurance exchange market. Recently, a number of federal agencies have said that this practice is illegal under current healthcare laws.
From a business perspective, it is easy to understand why...
Previously on our blog, we discussed the enforceability of non-compete clauses. It is important to be familiar with the concept not only for contracting purposes, but also from the standpoint of being either an employer or employee. Recently, this issue has been in California state news, as it appears that large companies are trying to enforce non-compete clauses that are found in employment agreements of low-wage workers.
The case at issue involved Benny Almeida, a former employee...
Understanding the principal-agent relationship is critical for all business transactions. The laws of agency govern this relationship, and they establish when an agent can bind a principal to an agreement, how far an agent’s liability extends, and what the fiduciary duties are that arise from the relationship.
The Principal-Agent Relationship
Generally (in terms of an “actual agency”), a principal hires an agent to act on his or her or its behalf. The principal-agent relationship is not...
The relationship between an officer or director and a corporation gives rise to certain fiduciary obligations as a matter of law. One of the fiduciary duties that an officer or director owes the corporation is a duty of loyalty. The duty of loyalty requires every officer or director to act in good faith and with a reasonable belief that what he or she does is in the corporation’s best interest.
A classic example of a...
The legal conflicts that businesses most often face are contract disputes, financial disputes, and employer-employee issues. If your business is facing such a conflict, it will be encouraging for you to know that most of these disputes can and are resolved without going to court. Alternative dispute resolution ("ADR") can save your business a lot of time and money if you utilize it as a means to resolving your legal issues. There are many...
On September 10, 2014, California Governor Jerry Brown signed AB 1522, a law requiring public and private employers to provide their employees with at least 3 paid sick leave days per year. It is very important that employers begin implementing paid sick leave policies to make sure they are compliant with the new law, which goes into effect in July 2015.
Under the new law, most employees will be entitled to one (1) hour of...
