Minnesota has traditionally been an employee-friendly state on the issue of non-compete agreements. Past court rulings cited the restraint on trade imposed by non-compete contracts when the court decided in favor of employees on these matters.
The time to develop an exit strategy is when you form your business partnership or corporation. The exit strategy is an agreement regarding business assets, debts and liability should a partner or another principal no longer be able to, or want to, engage in the business. You can avoid disputes and, ultimately, litigation by anticipating events that can put your business in jeopardy and including clear contractual language that addresses the situations.
New businesses frequently begin on a wave of exuberance and optimism. Riding this wave, entrepreneurs often have difficulty accepting the fact that the trust and goodwill they currently have with their business partners may not be permanent. As the business develops, interests may change and new stakeholders may alter the dynamics. Even if the composition of the business remains the same, people change and relationships may sour. This can create serious problems for minority shareholders in closely held corporations when other stakeholders join forces to exclude them from the operation of the business.
Jurisdictions across the United States added limited liability companies (LLCs) to their business and corporations codes in order to provide many of the benefits of incorporation - while giving entrepreneurs the flexibility to design entities that met the particular needs of their business models and ownership structure. To that end, most states give LLC organizers a modicum of freedom when it comes to defining the organizational structure of their proposed businesses.
Contracts are written to protect parties to an agreement. What happens when one party does not perform their side of the agreement? Imagine that you or your business ordered 1,000 widgets and received 1,000 gumballs. What then? Unless the widget supplier has a legitimate reason for not performing any of the contract's terms, they have breached the contract. An Elk River business litigation attorney at the Hess & Jendro Law Office, P.A. can assist you in pursuing the damages you are entitled to in a breach of contract situation.