The Importance Of Law In Business

Two of the focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. For anyone unfamiliar with the business world, it is closely intermingled with the legal world. In fact, most successful businesses have a strong legal component. To not have one is literally flirting with catastrophe. The following contributed post is entitled, Importance Of Law In Business.

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Every business owner, whatever their area of business, naturally exposes himself to legal risks during their business activities, so he is required to build a proper legal envelope that will protect them and their business, reduce risks and avoid unnecessary expenses and damages in the future. Here are some important tips that will help business owners identify the relevant potential issues in their business activities.

Photo: Unsplash

If the business operates as an authorized dealer, it must be examined how the business owner’s exposure can be minimized in the face of potential lawsuits or legal proceedings. If the business is run as a partnership, it is important to draw up a partnership agreement that will regulate the relationship between the partners, their rights and obligations towards each other and towards the partnership itself. If the business operates within the framework of a limited company in which there is more than one shareholder, it is very important to draw up a founding agreement which will regulate the legal relationship between the shareholders themselves and the company. Law is vital for any business, therefore, seek out a great team and be educated on employment law.

Every business that provides services to customers must have a quotation document/ contract agreement that regulates, among other things, the legal issues between the business and its customers. It is also very important to draw up agreements that determine the business’s relationship with external parties with whom the business works on a regular basis, such as: employment agreement (mandatory by law), service agreements, supplier agreements, cooperation agreements, franchise, license agreements, marketing and more.

Maximum protection of the intellectual property of the business and its owner: One of the significant, important and valuable assets for the business and its owner is its intellectual property which is reflected in the copyright (eg works, collections, articles, designs, photographs, software, source code, applications, methods and more) as well as in its trademark which symbolizes the unique brand the business has gained a reputation for and sets it apart from the rest of its competitors. Therefore, it is of utmost importance to protect these rights as soon as possible by registering them in your city or abroad and anchoring them in appropriate agreements when there are agreements with third parties.

In the case of a unique and innovative venture in its infancy, it is important to draw up a confidentiality agreement tailored specifically to the relevant venture and to sign all the parties exposed to the idea. It is also important to draw up contracts related to the enterprise’s platform.

Proper conduct in collecting payments from customers: It is very important to make sure that each customer signs a quote or demand for payment (also on a tax invoice that constitutes a demand for payment) and makes sure that there is a full signature. Any written commitment of the client by email, notices, watts-up or anything similar should always be kept to ensure a strong paper trail and to allow you the justice you deserve, if something goes wrong.

Author: anwaryusef

Anwar Y. Dunbar is a Regulatory Scientist. Being a naturally curious person, he is also a student of all things. He earned his Ph.D. in Pharmacology from the University of Michigan and his Bachelor’s Degree in General Biology from Johnson C. Smith University (JCSU). Prior to starting the Big Words Blog Site, Anwar published and contributed to numerous research articles in competitive scientific journals reporting on his research from graduate school and postdoctoral years. After falling in love with writing, he contributed to the now defunct Examiner.com, and the Edvocate where he regularly wrote about: Education-related stories/topics, Science, Technology, Engineering and Mathematics (STEM), Financial Literacy; as well as conducted interviews with notable individuals such as actor and author Hill Harper. Having many influences, one of his most notable heroes is author, intellectual and speaker, Malcolm Gladwell, author of books including Outliers and David and Goliath. Anwar has his hands in many, many activities. In addition to writing, Anwar actively mentors youth, works to spread awareness of STEM careers, serves on the Board of Directors of the Friends of the David M. Brown Arlington Planetarium, serves as Treasurer for the JCSU Washington, DC Alumni Chapter, and is active in the Dave Ramsey Financial Peace Ministry at the Alfred Street Baptist Church. He also tutors in the subjects of biology, chemistry and physics. Along with his multi-talented older brother Amahl Dunbar (designer of the Big Words logos, inventor and a plethora of other things), Anwar is a “Fanboy” and really enjoys Science-Fiction and Superhero movies including but not restricted to Captain America Civil War, Batman vs. Superman: Dawn of Justice, and Prometheus. He is a proud native of Buffalo, NY.