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Using a Buy-Sell Agreement to Avoid Shareholder Disputes

When two or more individuals own a business that is or may be on the brink of success, they may decide to choose a formal entity for the business. If shares are split equally between the shareholders, say 50/50 or 20/20/20/20/20, the potential for corporate deadlock is obvious. If share are not split equally, say 60/40, 75/25 or 50/25/25, the potential for shareholder oppression is likewise obvious.

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Business Formation Options

There are many decisions to make when starting up a business. One is which business form to select. Business owners should be familiar with the different options and how to evaluate them to decide which option is best for them and their business. Business law can help them do that.

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Good Employment Contracts Can Prevent Expensive Disputes

Many people have said that the most valuable asset any business has is the people that work for it.

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Texas’s Three-Day Right to Cancel Contracts

Well-written and well-thought out contracts clearly outline the responsibilities of both parties to avoid any confusion. Effectively, this allows both parties to accomplish their intended goals more efficiently. Though, in Texas, one may have the right to cancel contracts within three days of signing.

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