A misrepresentation can occur where one party to a contract makes a false statement of fact to the other, which the other relies on. There are three types of misrepresentations—innocent misrepresentation, negligent misrepresentation, and fraudulent...
The business judgment rule is invoked in lawsuits when a director of a corporation takes an action that affects the corporation, and a plaintiff sues, directly or derivatively (i.e., on behalf of the corporation), alleging that...
A limited liability company is a form of business organization combining elements of limited partnerships and corporations. All partnerships consist of individuals who have agreed to run a business together under the terms of a partnership agreement. A...
A Statute of Limitations is a law that sets the maximum time the parties involved have to initiate legal proceedings from the date of the subject occurrence or alleged offense, whether civil or criminal. The length of time a Statute of Limitations...
A legal injunction is a court order to take a particular action or refrain from it. There are three types of legal injunctions: permanent injunctions; temporary restraining orders; and preliminary injunctions. Temporary restraining orders...
Consideration is what each side in a contract each side must agree to give up to make the contract legally binding. In a contract, one party’s Consideration (thing given) is exchanged for another party’s Consideration. Consideration is...
This is a legal document used to create a business entity and usually contains the entity’s name, type of business, and business structure. Many businesses in the United States and Canada are formed as a corporation. This is a type of business entity...
A Personal Guaranty is a legal document through which an individual promises in writing to repay a loan or credit issued to a business entity or another party. A Personal Guaranty may be provided by an individual to assume responsibility...
A Strategic Alliance is an arrangement between two companies to undertake a mutually beneficial project, with each remaining independent. Joint Venture is a form of Strategic Alliance that is more complex and binding. In a Joint Venture,...
A shareholders’ agreement is an arrangement among a company’s shareholders regarding certain rights and obligations of the company’s shareholders. A shareholders’ agreement also includes information on the management of the company and privileges and protection...
