If you intend to be in business with another person, whether it be your best mate or a colleague, it is extremely important that you have a written agreement between you that includes things such as how the business is to be run, what direction the business is to take, what decisions require everyone to agree, and what happens if one of you wants to sell your interest.
If you intend to do business with others, it is extremely important to have some Terms of Trade drafted specific to the way you do business.
Should your business suffer difficulties, people can find themselves in the very unfortunate position of finding out that after all of the shared talk, the highs and lows, they are actually in a disagreement with their business partner or their customer. Not only can it cost them a lot of money to try to sort it out, but it can also cost them the relationship with the other person, something that is made much more difficult if it is family. If you decide to cut costs at the beginning of a business investment by not getting legal advice, you could find yourself paying a very high price at the end of it when there is a lot more at stake.
If you’re investing in business, please see us.
By Jude Spicer | Associate
The information contained in this article is provided for informational purposes only and should not be construed as legal advice on any subject matter.