Businesses can take many forms, such as corporations, partnerships, and limited liability corporations. Businesses may suffer an interruption in many ways but three common reasons include disputes among the owners, cash flow and disputes with other parties such as customers and vendors.
Disputes Among Owners
Properly drafted agreements among the owners will not prevent all disputes but is a way to lay out the rights and responsibilities of the owners. It can also include procedures when one or more of the owners no longer wishes to remain as an owner.
Controlling Cash Flow
Cash flow can have a significant impact on the operation of a business. Proper debt management and collection can help avoid interruptions in cash flow. This debt management can include mild or aggressive actions to collect the delinquent debts. Contracts with customers may help to minimize losses and provide for late fees, interest on balances and the recovery of attorneys fees.
Third Party Disputes
Disputes with third parties may involve customers, vendors or partners. Thorough contracts can make provisions for various scenarios that may occur helping to reduce the unknown when situations arise. Not every possible situation can be provided for in contracts but experienced attorneys can include clauses to prevent many of the common mistakes that frequently occur.
In all of these cases, properly crafted contracts will avoid disputes and setbacks that will interrupt the operation of the business. Contact MCcormick Law today to set up a consultation.