Starting from the name of your business to its structure to its operation has legal implications. So what you need is examining of some of the legal concerns you may want to address with your attorney before you start your business. In this article we are going to see some of the common legal pitfalls should be watch out when setting up your own business.
A partnership will be required when two or more parties form to start a business, sharing the workload and investing capital to get things going. It is very safe to have a written partnership agreement and get it verified by a solicitor. If you do not have a proper agreement and if it all goes wrong, the partnership will be covered by the Partnership Act, whose provisions may not always seem fair.
Keep everything in Writing:
No need to tell the important of having everything in writing. If things go wrong you may not have any legal proofs without some form of documentation, contracts are the basis of all business relationships. A contract will consist of a key components like, Consideration, an obligation to pay or a promise to provide something in return for something of value. Certainty, the contract should clearly state what is expected of all parties. The purpose of this act to be legally bound and an offer and an acceptance.
Make Sure all the Employees have a Contract:
It is very important to have a contract with employment and make sure that whether all new employees are entitled to work in this country, otherwise you may face heavy penalties. The contracts act to protect both parties.
Know about the Employment Laws:
Employment laws in this country are very accurate on what you can and cannot do. Before you employ someone in your company, make them redundant or change their terms and conditions of employment, take legal advice. If you don’t do that, you could find yourself open to claims for unfair dismissal, discrimination or breach of contract. Also warn the employees about the discrimination, sexual harassment and other illegal acts will not be tolerated.
Insurance is vital from a financial viewpoint. There are also legal necessities for employee’s and public liability insurance. If you sell products, product liability insurance will protect you while someone injured by a defect in your product successfully sues you.
Terms and Conditions:
If you don’t spell out in black and white your terms and conditions of trade (T&Cs) you are giving you customers the licence to pay you when they feel like it. And if they go into extermination before paying you, you may not be able to reclaim your goods if you do not have a Retention of Title clause in your Terms & Condition’s. Draft some suitable Terms and Condition’s for your business and ask a solicitor to check them. You must ensure that the customer agrees your terms and conditions, and ideally, signs them when placing an order.
Finally, Try to be more careful when signing lease agreements, especially for property. Even if you move and sell the lease on, you could find yourself liable if the opposite person defaults. Check whether you will be liable to repair and improve the property under the terms of your lease.
Avoiding these kinds of some legal pitfalls will help you to ensure that smooth running of your business and will also prevent you from receiving any unwelcome fines.
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