Running a business can be difficult. It does not matter whether it is a multi-national, billion-dollar corporation or a small family-owned store. There are numerous pitfalls when dealing with government, employees, customers and other businesses. There are many chances of things going wrong, and for conflicts to ensue, whether it is a dispute over a contract or protecting confidential information, customer lists or trade secrets. When this happens, businesses can face the prospect of litigation. But, how can a business owner avoid such costly experiences, or at least be prepared if they occur?
The first rule of modern Nevada business should be knowing with whom one is dealing. From suppliers to subcontractors, it is important that companies do their due diligence on those with whom they do business. Does the other party have a history of contract breaching? Has it filed bankruptcy numerous times to get out of its debts? Is there any history of illegal or unethical behavior that might cause a company to become involved in a regulatory nightmare?
Second, while the old “handshake contract” may be a lovely thought (and probably, mostly mythical, since the invention of courts), it is best left in the rosy memories of retired executives. Having clear, precise written contracts can go a long way toward preventing later legal issues. Having a process to document agreements and ensure that they are being adhered to is an important part of running a business that is less of a litigatory target.
The above should not be considered legal advice, but a general, common-sense approach to business. One part of avoiding expensive and time-consuming business litigation, is considering having legal agreements reviewed by professionals who have experience in the appropriate area of Nevada law.
