It was time for an update at True North Business Consulting. We are still providing contract review and creation, mediation services and educational seminars on business topics. Is it time for you to look at the legal side of your business?
A Perfect Example:
Partners in a business recently came to me. They have been in business for 10 years and are in debt. They do not know if they should continue. They had created an S-Corporation, which means they created a separate legal entity with the Commonwealth of Massachusetts. They did this to protect their personal assets. However, they never created a partnership agreement, which would give them guidance on what to if they decided to split up. A contract of this kind should have been the first step. Instead they are confused and do not know what to do.
Clients Are Impacted:
Whether the business continues with one person, the partners or is dissolved, there is going to be an impact with their clients. They had not changed their client contract since they started their business. There was some updating needed but their main issue was they cannot assign the contract to another business who may buy them. This means that they have to honor each of the contracts, even though they may sell the business!
Mediation Can Help Them:
Are they heading for court? No. They want a quick resolution, and most civil cases can take up to two years to get to litigation. This is after a large investment of money, which neither can afford. They also may not be happy with a judge or jury’s decision. Mediation provides an alternative where they can come up with their own solution, and still remain good friends.
When was the last time you updated your contracts? Are you involved in a dispute and it is heading to court? True North Business Consulting can help you.
Need a place to start, then start with our free videos at: You Tube Channel or browse through this blog for helpful hints.