Franchising
Intellectual Property License Agreement
North Carolina
Can an Intellectual Property License Agreement be terminated if the licensee fails to meet certain performance obligations?
I am a small business owner who recently entered into an Intellectual Property License Agreement with a larger company to use their patented technology in my products. The agreement includes performance obligations that the licensee (me) must meet, such as achieving minimum sales targets. However, due to unforeseen market challenges, I am struggling to meet these obligations. I need to know if the licensor has the right to terminate the agreement if I fail to meet these performance requirements, and what recourse I may have in such a situation.
Christopher N.
The short answer is, as will most legal questions: it depends, but likely yes. Assuming your agreement is with a sophisicated patent holder, the terms of resolving that relationship are more than likely detailed in the agreement which you both signed. We highly recommend consulting with an experienced business attorney in North Carolina that can help you negotiate a resolution, or help you cancel the agreement with as little pain as possible. Good luck.
Read 1 attorney answer>Small Business
Joint Operating Agreement
North Carolina
Can a Joint Operating Agreement be terminated unilaterally?
I am currently a partner in a joint venture with two other individuals, and we have a Joint Operating Agreement in place. However, due to significant disagreements and conflicts of interest, I am considering terminating the agreement unilaterally. I would like to know if it is legally possible for me to do so, and what potential consequences or liabilities I may face in such a scenario.
Christopher N.
The short answer is: it depends. The (properly drafted) document itself should discuss a dissolution of the agreement. Absent specific terms in the agreement, state contract and/or business law would control how to disolve the agreement and your partnership. We highly recommend you consult with an expereienced business or contracts attorney that can help the parties resolve their differences: beit working to reestablish or amicably disolve the relationship. Good luck.
Read 1 attorney answer>
Trade
International Contract
California
Can a party terminate an international contract if the other party fails to perform due to COVID-19 pandemic?
Can a party terminate an international contract if the other party fails to perform due to the COVID-19 pandemic? I am a small business owner who entered into a contract with a foreign supplier to provide goods for my business. However, due to the global impact of the COVID-19 pandemic, the supplier has been unable to fulfill their obligations. I am concerned about the potential legal consequences of terminating the contract and the possibility of facing breach of contract claims.
Sara S.
Hi, What you are likely looking for is a deep dive into your international contract's "Force Majeure" clause with a qualified attorney.
Read 1 attorney answer>Small Business
Startup Stock Option
Kansas
What are the key elements to include in a startup agreement?
I am in the process of starting a new business with a partner and we want to ensure that we have a solid legal foundation for our venture. We are looking to draft a startup agreement that will outline the rights, responsibilities, and ownership structure for both of us. We want to make sure that all important aspects such as equity distribution, decision-making authority, and exit strategies are properly addressed in the agreement. What are the key elements that should be included in a startup agreement to protect both parties and ensure a smooth operation of our business?
Christopher N.
The answer to your question depends on a variety of factors, the number of partners, the amount of money involved, the underlying business, e.g., is intellectual property involved, or is it restaurant, and the combines risks associated with the business. At a minimum, you need to detail: who owns how much of the company (50/50; 30/70); how much capital is going to be invested by each party and when that money is to be invested; how is that money to be spent and who can spend that money (and what are the limits); what decisions can be made and who has to approve them (vote or unilateral decisions); who is going to manage the day-to-day operations; what are the requirements for adding capital (and where it comes from) ... and how (or when) to withdrawal capital; how are partners added (or withdrawal voluntarily or forcibly); and, much much more. However, many times forming a small company is a very simple affair, but can be complicated. We highly recommend you speak with an attorney that specializes in small businesses. A good attorney will be able to help you with formation, but also be your (non-owner) partner, "outside general counsel," and faciliator of contacts to help you grow your business. Good luck!
Read 1 attorney answer>Employment
Acceptable Use Policy
Georgia
Can I be held legally responsible for violating an Acceptable Use Policy?
I work for a large technology company and recently discovered that I unintentionally violated our company's Acceptable Use Policy by using company resources for personal purposes. Although I did not realize this was against the policy, I'm concerned about potential legal consequences and whether I can be held personally liable for any damages or disciplinary actions as a result of this violation.
Sara S.
Hi, Your employee handbook may have the answer to this and is worth a review with a qualified attorney. Attorneys skilled in intellectual property may be able to give you more insight as well.
Read 1 attorney answer>Real Estate
Property Sale Agreement
Kansas
What are the key elements to include in a Property Sale Agreement?
I am currently in the process of selling my property, and I am in need of a lawyer's guidance regarding the essential components to include in a Property Sale Agreement. I want to ensure that all the necessary terms and conditions are properly addressed, such as the purchase price, payment terms, property condition, disclosure requirements, and any other legal obligations that should be outlined in the agreement to protect both parties involved in the transaction.
Sara S.
Hi, The components of a property sale agreement will vary from state to state. Finding an attorney licensed in your state will be critical to ensure you have all relevant documents.
Read 1 attorney answer>Affiliate Marketing
Influencer Agreement
Texas
Can an influencer agreement be terminated by the brand without cause?
I recently entered into an influencer agreement with a brand, but I have concerns about the termination clause in the contract. The agreement does not specify whether the brand can terminate the contract without cause, and I want to understand my rights and obligations in case the brand decides to terminate the agreement unexpectedly.
Sara S.
Hi, Your rights and obligations in case the brand decides to terminate the agreement "unexpectedly" largely depend on why the brand terminates the agreement, and what exactly the termination clause says.
Read 1 attorney answer>Securities Law Compliance
Offering Memorandum
California
Can an Offering Memorandum be used for fundraising in a startup?
I am a co-founder of a startup and we are planning to raise funds from accredited investors. We have heard about Offering Memorandums being used for fundraising, but we are unsure if this is applicable to our situation. We want to know if it is legally permissible to use an Offering Memorandum for fundraising in a startup, and if so, what are the key requirements and considerations we should be aware of.
Christopher N.
Your question does not have a quick or answer, and is highly dependent the very specific facts of your company, your industry, and potential investors, but, the short answer is: yes. The offering memorandum is just that: a (non-binding) offer to sell securities in your company. There are other documents that will have to be prepared if an investor agrees to fund you. Those documents and the underlying "advertising" for the sale of those securities are, as you likely know, very strictly regulated by the SEC and California (under the Blue Sky rules). Run afoul of them to your detriment and you may need very expensive attorneys. We highly recommend you consult with experienced securities attorneys who can help you craft the offering memo, subscription agreements, etc. to address the issues specific to your company and potential investors. Perhaps not the full answer you are looking for, but hopefully a wise note of caution.
Read 1 attorney answer>Property Damage
Demand Letter for Small Claims
Pennsylvania
Must I send demand letter to small business prior to filing civil suit,?
I am suing contractor I hired to fix furnace but he broke it and made threats demanding more money to come back on what should have been warranty work. I send pictures of damage but no demand letter out of fear.
Christopher N.
The short answer is: no. HOWEVER, setting expectations up front, clearly identifying the issues and your evidence could facilitate a quicker settlement. The letter can also serve as a shot across the other party's bow to force the party to report the issue to their insurance company which MAY make resolving the damage claims a quicker affair.
Read 1 attorney answer>Contracts
Liability Waiver
Kansas
Is a liability waiver enforceable if it was signed under duress?
I recently participated in a recreational activity where I was required to sign a liability waiver before being allowed to participate. However, I felt pressured to sign the waiver, as the staff did not provide any opportunity to review the document or seek legal advice. I am now wondering if the waiver is enforceable since it was signed under duress and if I would still be held liable for any injuries sustained during the activity.
Cherie M.
Thank you for your question. From the facts you presented, this would not be duress. You could argue undue influence since they were pressuring you, but it lacks the duress element since you could have just not participated. Kansas is also very generous in favoring the enforceability of liability waivers, so the specific facts of the incident and the terms of the waiver would have to be taken into consideration. Please let us know if you have any further questions!
Read 1 attorney answer>Contracts
Recruitment Agency Contract
Washington
Is it legal for a recruiting agency to charge a fee for providing a candidate who was previously referred by another agency?
I recently engaged a recruiting agency to assist in finding a suitable candidate for a position at my company. However, another agency had previously referred a candidate who I ultimately hired through the new agency. Now, the first agency is claiming that they are entitled to a fee for the candidate, even though they did not actively participate in the hiring process. I would like to know if it is legally permissible for the new agency to charge a fee for providing a candidate who was previously referred by another agency.
Merry K.
I'm sorry to hear about what seems like a complicated mess. I suggest that you carefully review the contracts from each agency. The types of questions a contracts attorney would look for would include whether or not you're obligated to the first agency for referring a person and whether or not the second agency may be on the hook to the first agency for referring an employee signed up with the first agency. I'd want to know the time limits for referrals - eg, if the first agency's contract says that you would be obligated to pay them for a hire within "x" amount of time after referring the candidate. To my knowledge, this is the only chapter of Washington State law to review, that is on point: https://app.leg.wa.gov/RCW/default.aspx?cite=19.31 It's often possible to negotiate a settlement in these types of situations. The first agency wants to be paid for their time/effort, which is reasonable, especially if they had a contract with you, but you may be able to settle (if you do, be sure to get everything in writing - that they release you from further liability). If the second agency is somehow at fault, you may be able to get them to reduce the fee they charged you, and/or pay the first agency some or all of the first agency's fee. I hope this has been helpful. This is not the kind of project I take on anymore, but you should be able to find a great employment attorney through ContractCounsel.com if you need one to help you navigate.
Read 1 attorney answer>Civil Rights
Termination Letter
Washington
Can I sue my employer for wrongful termination based on the contents of my termination letter?
I recently received a termination letter from my employer, which stated that I was being let go due to poor performance. However, I strongly believe that this is not true and that the real reason for my termination is discrimination based on my race. The termination letter contains several statements that I believe are false and misleading. Can I sue my employer for wrongful termination based on the contents of this termination letter?
Merry K.
I am so very sorry to hear about your termination. One can always sue; the question is whether one can win. The content of the letter would be used as one piece of evidence; you would need to provide as much evidence as possible to win a case (or to even convince the employer to settle with you). Some of these other pieces of evidence would include such things as the performance and discipline of colleagues who are of a different race than you; evidence that demonstrates your performance was no worse than colleagues who weren't terminated; testimony from colleagues, and etc. In addition, a court would look at things such as how long you had been on the job when compared with other employees who were not fired; whether you and the colleagues used for comparison had the same/similar jobs or not; etc. If you employer has at least eight employees, you can file a complaint at no charge with the Washington State Human Rights Commission here: https://www.hum.wa.gov/file-complaint This neutral state agency will file a complaint on your behalf at the same time with the federal EEOC (which has been gutted) and HRC will conduct a neutral investigation and also try to help you settle with the employer. You can skip the State HRC and go straight to state court, but this would be challenging to do without an attorney representing you - and you'll only find an attorney to represent you if you convince him or her that you have an excellent case. I also want you to know that Tacoma, Seattle, Spokane, and King County have their own discrimination agencies, so if you were working in one of those places, you can contact the appropriate agency for help. I hope that helps. I have a long background in discrimination law, and worked at the HRC three times, and was also a City of Tacoma Human Rights Commissioner.
Read 1 attorney answer>Investments
Common Stock Purchase Agreement
Texas
What are the key provisions to include in a Common Stock Purchase Agreement?
I am in the process of negotiating a Common Stock Purchase Agreement with a potential investor for my startup, and I would like to understand the essential provisions that should be included in the agreement to protect both parties' interests, such as the purchase price, number of shares, representations and warranties, conditions precedent, and any restrictions on transferability or voting rights.
Darryl S.
The specific terms (such as whether to give any voting or veto rights for example) will depend on factors like your company's stage, the investor's sophistication level, and the investment amount or percentage of the company the investor is acquiring. Consider having experienced counsel review the agreement, as the long-term implications of certain provisions can significantly impact your company's future governance, ability to raise funds and options to bring on other investors or key employees. Early stage companies often have significant restrictions on transferability of the stock, a ROFR clause and claw-back options. The provisions you mention are also required as they are core to the business terms. Hope this is helpful. The classic lawyer answer is "It depends" and that is true here.
Read 1 attorney answer>Securities
Fundraising Contract
New York
Can I legally raise funds through cryptocurrency for my startup?
I am an entrepreneur looking to raise funds for my startup through an Initial Coin Offering (ICO), a form of cryptocurrency crowdfunding. However, I am unsure about the legal implications and regulations surrounding this method of fundraising. I want to ensure that I am in compliance with relevant laws and regulations to avoid any legal issues in the future.
John B.
Raising funds through an ICO is legally possible —but only if you navigate securities laws, money‐transmission rules and (often) state “blue‐sky” requirements. Below is a roadmap to the U.S. legal framework you must consider; I’ve included statute citations and SEC guidance where relevant. 1. Determine Whether Your Token Is a “Security” Key Point: If your token meets the definition of an “investment contract” under U.S. law, it’s a security. Selling a security to U.S. investors without registration (or a valid exemption) violates the Securities Act of 1933 and the Securities Exchange Act of 1934. Conduct a “Howey analysis” for your token. Retain counsel to document why—factually and legally—you believe it’s not a security (if that’s your position). But be prepared that the SEC will likely view it as a security offering. 2. If It’s a Security, Register or Find an Exemption Choose the exemption that best fits (e.g., 506(c) if you have only accredited investors and want to market openly). File Form D for Reg D, or engage an SEC-registered crowdfunding portal for Reg CF, or go through Form 1-A for Reg A+. Each has different reporting burdens and limitations. 3. State (“Blue‐Sky”) Securities Laws Even if you rely on a federal exemption like Reg D Rule 506, most states impose their own registration or notice filings. For each state where you permit a sale, either file the required Form U-2 (for 506 offerings) or register/claim exemption. Most startups rely on the uniform notice procedure under 506 to simplify compliance. 4. Anti-Money Laundering (AML) / Know-Your-Customer (KYC) Rules Even if you structure your ICO as a non-security (which is rare), you must still comply with anti-money-laundering laws if your token is considered a “virtual currency” under FinCEN’s rules. If you accept USD (or other fiat) in exchange for tokens, register as an MSB with FinCEN, build out an AML compliance program, obtain state money-transmitter licenses where required (e.g., New York BitLicense), and integrate a robust KYC/AML vendor at token sale. I have been heavily involved in this space since 2017 - feel free to reach out John@BenemeritoLaw.com
Read 1 attorney answer>Landlord Tenant
Residential Lease Agreement
Indiana
Can a landlord in Indianapolis record video and audio without telling the tenant?
I rent a room in a house. Landlord ./owner oesnt live here. A week ago he installed cameras in the living room and kitchen. They don't cover exterior doors. He said nothing to me but I see them. Not hidden. Tonight I found out he can talk to me and hear me through them. Is this legai? What should I do?
Joseph B.
The question would be what exactly do you rent. Do you rent a room and the kitchen and livingroom are common areas or do you rent the entire space. You have an expectation of privacy inside the space you rent. So, for example, if you rent a single room, you have an expectation of privacy inside that room, and thus there is no expectation of privacy in the common areas. However, if you rent the entire space, then the area for your expectation of privacy is the entire unit. This does not apply to bathrooms or changing rooms or other areas where there is also a general expectation of privacy.
Read 1 attorney answer>Business Contracts
Contract For Sale And Purchase
South Carolina
Can someone review a sales contract for my mom.
My mom is selling her home as is, and needs someone to review the contract before she signs it.
Brad T.
Yes. I can review this contract for you for a fixed flat fee. I will need to view the contract to provide you the flat fee price. I look forward to the opportunity to assist with your legal needs. Thanks!
Read 1 attorney answer>Real Estate
Subordination Agreement
Texas
What is a Subordination Agreement?
I am in the process of purchasing a property and the lender has requested that I sign a Subordination Agreement, but I am unsure of what this entails and how it may affect my rights as a borrower. I want to understand the purpose and implications of a Subordination Agreement before signing it, as well as any potential risks or benefits involved in agreeing to it.
Darryl S.
The exact situation is unclear as Subordination is usually when you are selling rather than buying. Subordination means putting something in a lower priority compared to something else. In legal and financial terms, it usually comes up when talking about loans or claims. When one party agrees to “subordinate” their claim, they’re saying: “I’ll wait in line — you get paid before I do.” There must be multiple loans or claims and bank is establishing the order they'll get paid.
Read 1 attorney answer>Business Contracts
Purchase Order
Texas
Can a purchase order be legally binding without a signed agreement?
I recently entered into a business transaction with a supplier where we discussed the terms and conditions of the purchase verbally, and they sent me a purchase order outlining the specifics of the deal, but we did not sign any formal agreement. Now, they are claiming that the purchase order is binding and are demanding payment, but I am unsure if it holds legal weight without a signed agreement.
Darryl S.
It's not clear from the question if you verbally committed to the order or PO. This is something that you can and should dispute with the supplier. The purchase order may contain the essential elements of a contract: an offer (the specific goods/services), acceptance (your verbal agreement if it was given), consideration (the payment terms), and intent to create legal relations (business context). Contract law generally recognizes that commercial agreements don't always require signatures to be enforceable. If you made a verbal commitment, followed by the written purchase order, this could constitute what's called a "course of dealing" that courts may recognize. That said, the specifics of your situation matter greatly. If you never agreed to the order or the purchase order contains terms that weren't part of your verbal agreement, or if there are significant discrepancies between what was discussed and what's in the document, you have grounds to dispute certain elements.
Read 1 attorney answer>Trademark
Trademark Cease And Desist
California
Can I ignore a trademark cease and desist letter if I believe my use of the mark falls under fair use?
I recently received a cease and desist letter from a company claiming that my use of their trademark infringes on their rights, but I believe my use of the mark falls under fair use as I am using it for commentary and criticism purposes. I am unsure if I should ignore the letter or if I need to take any legal action to protect myself.
Tabetha H.
Ignoring a trademark cease and desist letter is risky, even with a potential fair use defense. While trademark fair use for commentary and criticism is recognized, its application depends on specific factors like how prominently you're using the mark, whether consumers might be confused, and if your use is commercial. Ignoring the letter could lead to escalation, including a lawsuit where you'd need to defend yourself at significant expense. A better approach is sending a response letter explaining your fair use position and why your use doesn't constitute infringement. This demonstrates you're taking the matter seriously while asserting your rights. Consider consulting with an IP attorney to evaluate the strength of your fair use defense and craft an appropriate response that might prevent further legal action.
Read 1 attorney answer>Business Contracts
Lead Generation Agreement
California
Is a Lead Generation Agreement legally binding if it was signed electronically?
I recently entered into a Lead Generation Agreement with a marketing company to generate leads for my business. The agreement was signed electronically using an online platform. However, I have concerns about the validity and enforceability of the agreement since it was not signed in person. I would like to know if a Lead Generation Agreement signed electronically holds the same legal weight as a traditional, physically signed agreement.
Tabetha H.
Yes, your electronically signed Lead Generation Agreement is legally binding. Electronic signatures have the same legal weight as handwritten signatures under federal laws like the Electronic Signatures in Global and National Commerce Act (ESIGN) and state laws adopting the Uniform Electronic Transactions Act (UETA). These laws specifically ensure that contracts cannot be denied enforcement solely because they use electronic signatures. The key requirements are your intent to sign, consent to do business electronically, and proper record retention—all typically handled by reputable e-signature platforms. Your Lead Generation Agreement is just as enforceable as a paper contract, provided both parties intended to create a binding agreement and the essential contract elements are present.
Read 1 attorney answer>