Business Contracts: Negotiating Terms and Conditions

Business Contracts

As a law firm that does a lot of legal work for business owners of various sizes, we end up handling collection matters in which the business renders services to a customer and for which the latter does not pay. The business owner/client comes to our office to seek legal advice on how to collect that account receivable. The very first line of analysis is to obtain a copy of the agreement between the parties (hopefully, there is a written document, as opposed to a verbal agreement, and the parties have fully-executed same!). Once we obtain the agreement between the parties, the first thing we look for is the payment term…is payment due within a specific time period after the services are rendered/product delivered (i.e. 15 days for example)? If not, then the business owner is in a weak position to pursue collection. Make sure that the payment deadline date is clearly indicated in the agreement.

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What is a Letter of Intent?

letter of intent

Letters of Intent are pre-contractual documents establishing basic terms which the parties intend to incorporate into a definitive agreement; in other words, they are “agreements to agree.”

They are used in many major business transactions, including the purchase or sale of a company, commercial real estate purchases, lease agreements, and several other categories of agreements.

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OWM Newsletter – Stock v. Asset Sale When Buying or Selling a Business & Don’t Procrastinate: Why You Need an Estate Plan

FEATURE ARTICLES – “Stock v. Asset Sale When Buying or Selling a Business” by Joseph K. Koury, Esquire and “Don’t Procrastinate: Why You Need an Estate Plan” by Rebecca A. Hobbs, Esquire, CELA.

OWM FIRM NEWS & UPCOMING EVENTS – Kathleen M. Martin, Esq. and David A. Megay, Esq. have upcoming information sessions.

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OWM Blog – Stock v. Asset Sale When Buying or Selling a Business

When buying or selling a business, buyers and sellers have a choice: the transaction can be structured as either a purchase and sale of assets, or a purchase and sale of stock. Where the transaction is structured as a stock purchase, transfer of the ownership of the business entity itself results, and thus the entity continues to own the same assets and have the same liabilities as before. Where the transaction is structured as an asset purchase, the purchaser buys individual assets of the business, such as equipment, inventory, and goodwill, and the business entity itself continues to be owned by the same owner, often with dissolution occurring soon thereafter. The purchaser and seller may have various reasons for preferring one type of transaction over the other. …

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What is an LLC?

What is an LLC?

A limited liability company (LLC) is a legal entity formed to operate a business. It provides many of the advantages of a traditional corporation, but it is easier to form and maintain.

There are fewer formal meetings and documentation than with a standard corporation.  All LLC owners are typically protected from personal liability for business debts and claims.  Normally, LLC owners stand to lose only the money that they’ve invested in the LLC.

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OWM Blog – Consider Limiting Liability in Conducting Your Business

Limiting Liability: Tips from Business Lawyers in Montgomery CountyMany of OWM Law’s business clients choose to conduct their business in an unincorporated, sole proprietorship form. While this approach may offer the conveniences of little expense or formality typically associated with conducting business through a limited liability entity, there are drawbacks to this approach, of which our clients should be aware. The Business Law Practice Group at OWM Law looks forward to discussing the particulars of your business needs in determining an appropriate manner for you to pursue your business interests.

The sole proprietorship is a type of business owned by a single person for which there is no legal distinction between the business owner and the business itself. Assets of the business are owned by the individual, and the individual is personally responsible for the debts of the business. There is no protection afforded the individual, as when a limited liability entity such as a corporation or limited liability company is formed by the individual for the conducting of business.

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OWM Newsletter – Recent, Significant Amendments to Pennsylvania Law of Limited Liability Companies

In November 2016, and effective February 21, 2017, Pennsylvania Governor Wolf signed Act 170. That act amends Title 15, Corporations and Unincorporated Associations, the latter of which include limited liability companies. The amendment brings Pennsylvania law closer in line with the Uniform Act promulgated by the Uniform Law Commission. The act also enables the creation of nonprofit limited liability companies, previously restricted to corporations.

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