As a business owner, it’s important to have business objectives like aspiring to turning a profit. But what about the legal aspects of your business, and knowing what rights you and your company have?
Have you ever been put into a position where you don’t really know where you stand legally in a commercial dispute? It’s not something many business owners often consider, unless they end up having a legal issue to attend to.
It’s important to note, there are potential legal issues or pitfalls that can arise at anytime, simply through how you run your business and your general everyday business dealings.
Many myths exist around business law so it’s a good idea to be informed and prepared when running a business.
So let’s discuss some of the common business law myths:
If a business dispute arises and you’re unsure, the best thing you can do is obtain legal counsel.
Be proactive by engaging a commercial lawyer who can advise you on where you stand and your chances of success in the dispute. Thinking you can handle it yourself may put you in a vulnerable position whereby you could potentially overlook something that you don’t understand and lose the dispute.
Don’t wait till a worst case scenario situation to get some assistance!
Businesses do not have to pay for damages or losses that are not caused by their conduct or their products.
Public liability insurance will cover your company for third party death or injury and is compulsory for certain types of companies.
Unfortunately, this is not always the case and it depends on the individual circumstances like how the business is set up.
For example, if you trade as a company and don’t mix your personal and business assets, then yes, your personal assets usually can be protected.
However, if you trade as an individual or partnership, then yours and/or your partner’s personal assets aren’t protected if there is a business debt.
As much as this would be great, this is not entirely the case and it’s certainly not black and white.
Generally if you win your case, you will be entitled to an order for your costs, however in some jurisdictions, this differs. In some instances each party will bear their own legal costs and in other instances even if you win, you may only be entitled to a portion of your legal costs associated with the case.
Your commercial lawyer should be able to advise you on any expected costs based on the final outcome.
Business contracts do not need to be complex in order to form a binding agreement. There is no need to add lots of words or incorporate overly complicated terminology.
A common misconception is lengthy and complex contracts are required in commercial settings – this is simply not true. What is important is that the terms and conditions for both parties of the agreement are clearly outlined in the contract.
Not understanding some of these common commercial myths could deter or even stop you from taking action if you have a commercial hiccup, when in fact you may be able to act or do something about the situation.
If you’re looking for someone to assist with commercial disputes or legal matters in Chatswood or greater Sydney, contact our friendly team at TY Lawyers Chatswood.
Have a confidential discussion about your situation and get peace of mind throughout the process. Call: 02 8007 0135 today.