Establishing a basic business partnership in California is not much of a formal process except when it comes to taxes. You can shake hands with another person, or group of persons, and agree to start selling widgets or something else, or provide services of some sort.
Suppose you have decided to open a business, and you examine the various business structures available in California. You can open a sole proprietorship, but you hesitate because you know that all debts and liabilities will then belong to you and you alone.
Indemnity clauses can exist in many types of agreements or contracts. If you rent a car, the rental agency will put an indemnity clause in your rental agreement, holding you liable for any damages you cause to the vehicle. Indemnity clauses are common in partnership agreements so that the actions of one partner are shielded from the liability of the others.
Business owners and operators will typically purchase what is known as Commercial General Liability (CGL) insurance to protect themselves from a variety of hazards and incidents that would otherwise expose them to out-of-pocket awards and judgments.
Starting up and then operating a business can be costly, time-consuming, and challenging. The temptation is there to do things as quickly and inexpensively as possible, but be wary of using online DIY templates.
Operating a business is not always a walk in the park. All kinds of challenges, setbacks, and disputes can arise. Competition can be fierce, and tactics deployed by competitors can border on the illegal. You can fight back, or even negotiate with others who are attempting to bring you down, but the question always looms: When is the right time to sue?
If your business is being sued or you’re suing another business, a large chunk of both the time and costs involved will accrue from what is called the discovery process.
Suppose you and your business have just filed a civil lawsuit against another individual or business for breach of contract—or for tortious interference or any other valid reason—and the attorney for the other party subpoenas you in for a deposition.
California law defines contracts in the state as being either express or implied. Express contracts are “stated in words,” while implied contracts are “manifested by conduct.” An express contract can also be oral — not written — provided that no other California statute requires the contract to be in writing, as it does for home sales, for instance.
Disputes are essentially inevitable in any business. Some arise from agreements or contracts you have with other persons or businesses, while others arise internally between partners or between owners and employees.
