Published on January 11
A non-compete agreement (also referred to as a “do not compete,” a “covenant not to compete,” or a “no-compete clause”) is a contract by which one party (typically an employee) agrees not to compete with another party (typically the employer) for some specified period of time. A non-compete agreement may be created at any time during the employment relationship. If not signed prior to or on the first day of the employment relationship, some states require the employee to receive some “benefit” (such as a one-time cash payment, raise, or promotion) in exchange for signing the non-compete to make it …
Added in Confidentiality / Non-Compete Agreements
Published on January 11
What is an Arbitration Agreement
An arbitration agreement provides that two or more people will submit an existing or future dispute to arbitration. Arbitration allows a dispute to be decided by one or more persons (the “arbiters” or “arbitrators”) selected by the parties to the dispute instead of decided by a judge or jury in the court system. Arbitration agreements are most commonly made “prospectively” (meaning parties agree to arbitrate any future disputes) but can also be made “retrospectively” (meaning parties agree to arbitrate a dispute that has already arisen).
Arbitration agreements can be mandatory (the parties are required to seek arbitration …
Added in Business Disputes, Other Forms
Published on January 7
What is a Partnership?
A partnership is a business entity formed by two or more people who operate a business for profit as co-owners. For the purposes of creating a partnership, a “person” is any entity with its own legal status, including not only a human being but a corporation, trust, government entity, or another partnership. There are a variety of possible Partnerships are governed by the law of the state in which they are associated. Partnerships can take several forms including: general partnerships, limited partnerships, limited liability partnerships, and occasionally single member partnerships. Each of these is subject to its …
Added in Business Entities, Business Startup, General Partenerships, Limited Liability Companies, Limited Liability Partnership, Limited Partenerships, Online Business
Published on January 7
In certain situations, shareholders may find it advantageous to enter into agreements with other shareholders regarding how the company should be run or who will run the company. These agreements, known as “shareholder agreements” or sometimes “vote pooling agreements” or “block voting arrangements” are generally permissible and can pertain to a variety of topics. The specific rules governing shareholder agreements varies from state to state, however most states follow some version of the Revised Model Business Corporation Act (“RMBCA”). Section 7 of the RMBCA states the rules regarding shareholder agreements.
The most common types of shareholder agreements are:
Voting …
Added in Business Entities, Corporations, Helpful Business Info, Large Corporation
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