The old adage says that “a little competition is healthy,” and that’s true in business as much as any other aspect of life. Healthy competition gives consumers real choices – and it encourages companies to be both responsive to their customers’ needs and innovative with their products or processes. However, some companies take competitiveness to an unhealthy – and illegal – level. Unfair competition refers to various deceptive, underhanded business practices that hurt both the company’s rivals and consumers – and the market as a whole. What does unfair competition look like? Unfair competition ..read more

A personal guarantee is a commitment by an individual to take responsibility for a business’s debt or obligation in the event that the business entity itself is unable to fulfill its financial commitments. A personal guarantee is a legally binding agreement within which an individual pledges to repay a business debt or fulfill obligations on behalf of the business. This is often required by lenders or creditors, especially when dealing with small businesses, startups or companies with limited credit history. By providing a personal guarantee, an individual essentially becomes a co-signer or a ..read more

A straw purchase in real estate refers to a situation where one person (the straw buyer) acquires property on behalf of another individual, who may not be eligible or may wish to remain anonymous for various reasons. The straw buyer’s name appears on the property’s documents, but they do not intend to own or occupy the property. Instead, they are acting as a front for the true buyer. Straw purchases can be legal. It’s not that uncommon for someone to purchase property on behalf of another when both parties are aware of the deal and it’s not being done for any kind of fraudulent purpose. For ex ..read more

When doing business outside of the United States, it is important to have a contract in place that protects you and your company against disputes, fraud and resulting damages. These contracts are essential for any international commercial activities and should spell out the responsibilities of each party, the required timeline and the repercussions of a breach of contract. If one party violates the contract, it can be a complex issue to resolve and can result in serious financial implications for both sides.  What is international commercial law? International commercial laws are those ru ..read more

There are many reasons why a person or entity may extend a loan to another. If you have served as a creditor and are unsure what your rights are, read on to better understand your legal position. What are a creditor’s rights? Broadly speaking, a creditor has the right to get back money that is owed to them by means of a series of legal actions. This may include the right to contact the debtor or their family, put a lien on the debtor’s property, garnish a debtor’s wages or take another action allowed by their state. Creditor’s rights also refer to ways a creditor can interact with other credit ..read more

For contracts to operate effectively, laws must be in place to determine what makes contracts legally enforceable. However, it’s just as important for laws to exist when contracts are not enforceable. Knowing when a contract is legally unenforceable is equally essential as understanding the criteria for it to be legally binding. Protecting the financial interests of your business requires having a solid understanding of these two aspects.   Situations that affect the enforceability of a contract Some instances that can result in an unenforceable contract can include alterations of the con ..read more

When faced with a complex legal question, you may wonder whether you have the option to attempt to resolve your case without going to trial. There are many types of legal disputes where resolving a case without a public trial is not only preferable but recommended. This article will discuss the benefits of resolving your case through mediation and arbitration, no matter how complicated. We will also explore the difference between mediation and arbitration. What is mediation? Mediation is the process of voluntarily allowing a neutral third party to facilitate discussion in an attempt to resolve ..read more

In commercial litigation, several different kinds of damages can be awarded to a winning party by the judge and jury. A party can award compensatory damages, incidental damages, consequential damages, nominal damages, liquidated damages, and punitive damages to the aggrieved party. Different types of damages serve different purposes- from punishing the at-fault party for egregious behavior to paying for the entirety of the plaintiff’s losses or even simply proving that the defendant’s actions were wrong.   Compensatory Damages  When another party has acted negligently or unlawfu ..read more

Majority shareholders and top-level executives are usually responsible for making major decisions regarding the running of a business, as they own the major stake in the company. Still, the minority shareholders have rights, and it is not uncommon for disputes to arise between majority and minority shareholders due to reasons like those explained below. Corporate self-dealing This occurs when a board member or majority shareholder takes advantage of their position to push their interests, often to the detriment of the company. Large payouts to the board of directors or dividend payouts to majo ..read more

Business fraud occurs constantly. As seen in stories reported by traditional news outlets and social media, many companies fall victim to the hands of those with deceptive intent. As a business owner or senior-level manager, it’s essential to equip your staff and find ways to manage your assets to protect against the increasingly high risk of fraudulent activity.  Understanding how businesses can protect against hackers, dishonest employees, or external criminals attempting to take advantage of your company can save millions in damages and years of work to resolve otherwise. Types of busi ..read more