Category: Contract Disputes
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Operating Agreement Mistake that Tears LLCs Apart: Failing to Specify How Members Will Be Paid for Their Labor
As an attorney who helps small business owners who have disputes with their co-owners, I see a lot of California limited liability company operating agreements. Many are well-prepared and thoughtful documents that help founders protect themselves and their company. But many LLCs have problems that can lead to major disputes including expensive lawsuits between…
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What Happens When a Contract Fails?
In the United States, people enter into contracts under the implied covenant of good faith and fair dealing. This means all parties that sign a contract agree to keep their word and treat one another with respect — without using trickery or unfair tactics to avoid their contractual obligations. Sadly, not all contracts go according to…