A Massachusetts businessman is fighting to back out of one investment in favor of another. However, developers for both casino projects the investor is involved with are trying to lay claim, citing contracts he had with both firms.
Our Boston small business lawyers know this is one example of how important every last detail of a business contract can be. Some small business owners tend to rely upon boilerplate contracts, or Internet document mills. They may even use a standard contract form for each client or vendor or employee. This can be a mistake, as this case shows, because it is likely the fine print that is going to ultimately decide this case. Whoever loses stands to be stuck with hundreds of thousands more in expenses than initially anticipated. Having an experienced law firm draft your contract also helps ensure you will have competent legal representation in the event it becomes necessary to defend it.
There are numerous types of contracts for small business owners to consider. Among them:
- Employee agreements;
- Invention assignment agreements;
- Services contracts;
- Sales contracts;
- Confidentiality agreements;
Employment agreements are some of the most important, as it will serve to insulate you from potential legal action down the road. These agreements will spell out everything, including the detail and scope of the job description or nature of the relationship, as well as each party’s responsibilities. Again, having your attorney assist you, can save you a world of trouble later on.
Invention assignment agreements give you control over products, ideas, inventions and strategies developed by the employee while they were working for you.
Services contracts are important if your business model is geared to providing a service, as opposed to a product. It will spell out all the terms and conditions, responsibilities, fees and liabilities.
Then there are sales contracts, which are primarily for companies that sell a certain product. These documents will offer details on the prices, goods, terms and conditions, warranties and timelines.
And finally, you may need to consider confidentiality agreements or non-compete contracts, which would bar current or former employees from sharing information that is either confidential or proprietary with another person or party.
These are just a few of the contracts you may need to consider having drawn up by your small business lawyer.
In the case involving the casino, the Boston Globe reports that the businessman had initially pledged an investment to the Palmer project back in 2008, should the commonwealth legalize casinos, which it later did in 2011. When that happened, the Palmer company was one of the first considered by the state for a casino license.
However, late last summer, the businessman announced he had “disassociated” himself with the Palmer project, and was instead going 50-50 with a new casino project in Springfield. But the Palmer developers say that losing him – and his money – to a competitor as a major blow to their success, and they intend to sue him and their rival if he doesn’t return. Meanwhile, the businessman and the Springfield developers say they will file their own suit if the Palmer company interferes with their plans to move forward.
The Brown Law Firm, LLC, has offices in Belmont and Boston. For a free and confidential consultation, call 617-489-0817 or contact us online.
Developers in dispute over role of major casino investor, Dec. 31, 2012, By Mark Arsenault, Boston Globe
More Blog Entries:
Businesses Fighting Government Claims Need Legal Team With Experience, Nov. 15, 2012, Boston Small Business Lawyer Blog