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Businesses need to think twice before entering any agreements

When a business is in its very early stages, the owners will spend a lot of time making comprehensive plans to address any issues that may arise. Putting these types of agreements in place can help to limit future conflicts between partners.

However, even with extensive pre-planning, situations can develop that leave the business owners concerned over the next steps that they should take. They may need to move to a new location, which may result in a new lease agreement or even the necessity to break an existing contract. They may also need to create new employment contracts for certain new hires to help protect their customer base.

Each of these kinds of business contracts will require careful review before any action is made. If the business simply makes a decision without understanding its obligations and potential liability, they could find themselves having to devote a substantial amount of resources toward trying to fix a past mistake.

When it comes to employment contracts, there are very specific rules that must be adhered to in order for the agreement to be valid. Under Texas law, non-compete contracts need to be limited to time and geographic scope. This means that the employee signing the agreement cannot be forbidden from taking any job in a particular type of field. The terms must clearly state a geographic area where the contract will apply, which will depend on the industry involved.

The time requirements will also be an issue, as the companies cannot limit the person from pursuing a certain occupation for an indefinite period of time. Even agreements that run for a number of years could be found to be in violation of these laws, so businesses need to be especially careful when they create these documents, or they may be struck down by the courts. If that happens, the business may be unable to safeguard its customer lists and other important innovations that bring the entity value.

If you have questions about an employment contract, or other documents that you need to draft for your business, you should contact an experienced business law attorney. Your attorney can work with you to gain an understanding of your concerns, and then help you create agreements that protect your interests for the long-term.

In many situations, these agreements frequently become the source of litigation, which can result in very expensive battles in court. You need to know that the contracts you create will keep you out of the courtroom, leaving you to feel confident that you will be able to devote your full attention to running your business.

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