Contracts

A few weeks ago I wrote about the concept of piercing the corporate veil.  I received an e-mail asking what happens when someone breaches a contract he signed that included a personal guaranty.  Short answer - get a lawyer.  Here's the long answer... A personal guaranty is sometimes required for a contract.  Commercial landlords often require one before leasing space, as do banks when issuing lines of credit.  The t...

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Um...with a pen? Seriously, though.  It sounds simple, but you should consider the implications of how you sign documents on behalf of your company.  As a business owner you have a split personality.  In any situation, you will be either Jane Doe The Individual or Jane Doe The Business Owner.  Before you sign something that involves your company, think about the role you're playing.  If you simply sign your name, the par...

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You should.  I'm sure you expect that kind of response from a lawyer, but it's vitally important to not only read, but understand, every document that bears your signature. This rule is especially important when dealing with commercial leases, which are almost always written in favor of the landlord and have some pretty strict expectations of the tenant.  One client who was facing eviction had signed a personal guarantee for her busine...

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