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Deducting the Business Use of Your Home
Should You Incorporate Your Business
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ADA Protects Employees with Cancer
Update Social Security Number Verification for Employers
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Landlord/Tenant-Insurer May Sue for Fire Damage
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Good News For Those Who Struggle With Legal Risk
Partnerships And Limited Liability Companies
A Few Well Chosen Words About Contracts
A Few Well Chosen Words About Contracts
In business, as in nearly all professions, companies and employees need tools to perform their work. Virtually every business enters into contracts in the course of their operation. Leases, promissory notes, employment agreements, stock purchase subscriptions, incentive stock options, and non-disclosure agreements are just a few of the many types of contracts in use today.
As lawyers, we are often asked to read and interpret contracts which are tendered to our clients. We are also asked to draft agreements and contracts of all types. Although oral contracts may be enforceable under certain circumstances in California, written contracts are the preferred norm, especially if the contract falls within the “Statute of Frauds”. The Statute of Frauds, which has been codified in virtually all states, requires that contracts for the sale of goods valued over $500.00 or more, contracts for the sale of land, contracts guarantying the debt of another, or contracts which cannot be performed within one year must be in writing and signed by the party to be charged.
Aside from the need for written contracts in specific transactions, contracts usually bind two or more parties to specific obligations. These obligations may involve the payment of money for a good or service, or they may require that one party give up a right to something in exchange for a performance from another party (for example a litigation settlement agreement). Contracts can be the tools which enable the safest and most efficient way to transact business because they define the relationships and obligations of the parties to it. In this way, conflict and misunderstanding is lessened or even eliminated from the business transaction.
There’s a lot to learn about contracts and contractual obligations, and potential tax consequences of contractual relationships. At Davis Law Associates, we try to straighten these issues out so that your business has tools which enhance its value, while lowering the exposure to risk and uncertainty. If you need help understanding or drafting contracts, we’re here to help-give us a call at 858-793-1220 and ask for a consult.