Minimizing the chances of becoming involved in business litigation is one of the most important steps a company should take. Business owners should be aware of the most common litigation companies face to take proactive steps and avoid them. Our Philadelphia business law attorneys explain the most common legal issues companies face.
#1: Breach of Contracts
A breach of contract occurs when one of the parties involved is unable to perform or honor the terms of their ongoing contractual obligations. When companies sign a contract, they are expected to fulfill the terms’ requirements. When a company fails to perform as agreed, the other parties involved can file a suit to recover damages, such as compensatory, punitive, nominal, or liquidated damages.
#2: Intellectual Property
Companies often face disputes about intellectual property, such as patents, trade secrets, copyrights, and more. When businesses fail to take the right steps to protect their brand name, or product and development, it can result in legal disputes. It is important to have an experienced business law attorney on your side to ensure that your intellectual property is protected.
#3: Partnership Disputes
In most cases, small businesses are more likely to experience partnership disputes when they fail to create a written agreement. When one partner wants to change processes or attempt to introduce something new to the company, and the other partner disagrees, it is common for legal issues to arise. Larger corporations often deal with shareholder disputes if they believe the company isn’t being run properly.
#4: Non-Compete Agreements
Non-compete agreements restrict the ability of a former partner or employee to work for a competitor. Non-compete agreements must be of limited duration and within a certain geographical area. These cases can be difficult to handle if an employer or partner were to work with a competitor within the prohibited timeframe.
If your business is facing legal issues or you want to prevent business litigation, contact our Philadelphia business law attorneys today at (610) 550-8042.