In this article, you can discover… What a business divorce is, and when to consider one. Whether you can divide assets without dissolving a company. Common mistakes to avoid, and how an attorney can make business divorce simpler. What Is A Business Divorce And When Should Business Owners Consider One? A business divorce is the legal separation, restructuring, or dissolution of a business that results from a professional or personal breakdown between owners or partners. Much like a personal divorce, a business divorce focuses largely on the separation of ownership stakes, assets, responsibilities, management, etc. Business divorces are usually considered when there’s acrimony between partners or corporate gridlock. Unfortunately, a business divorce may occur because of misconduct by one partner or another, such as self-dealing fraud, secret competition, or other unauthorized use of company funds. What Options Are Available When A Business Partner Wants To Exit A Company?…Read More
In this article, you can discover… Whether oral business agreements are ever enforceable under Illinois law. How Illinois courts determine whether a valid oral agreement ever existed. Evidence that can help prove an oral agreement, and how an attorney can help. Are Oral Agreements Legally Enforceable Under Illinois Contract Law? In many cases, oral agreements may be legally enforceable, but it depends on the type of agreement. In Illinois, based upon the Statute of Frauds, there are certain kinds of contracts or agreements that have to be in writing. For example, a contract for the sale of goods over $500 must be in writing. Outside of these statutes, if an oral agreement contains an offer, an acceptance, or a consideration, it can be legally enforceable. What Are The Risks Of Relying On Verbal Agreements In Illinois Business Transactions? Relying on verbal agreements definitely exposes you to certain risks,…Read More
In this article, you can discover… What a contract renewal clause is, and how it works. The legal and financial risks of missing a contract renewal deadline. How to effectively navigate and negotiate contract renewal disputes. What Is A Contract Renewal Clause And How Does It Work? Contract renewal clauses are also commonly known as “evergreen clauses”, and they automatically extend an agreement for another set period of time unless one party, typically through written notice, terminates the agreement. In Illinois, these types of clauses are legal, but are subject to specific requirements to provide notice of the renewal period under some circumstances. Typically, if you do not opt out and provide the appropriate written notice, you could be stuck for another term of the contract. Why Do Automatic Renewal Clauses Frequently Lead To Business Contract Disputes? Automatic renewal clauses may be disputed as they are frequently buried…Read More
In this article, you can discover… The types of business information that qualify as a trade secret in Illinois. How Illinois courts determine whether confidential information qualifies as a trade secret. How a business can strengthen trade secret protection and defend confidential data. What Types Of Business Information Qualify As A Trade Secret Under Illinois Law? Many things, under the right circumstances, can qualify as a trade secret. Technical data, non-technical data, formulas, recipes, programs, or software could all be considered a trade secret. Unique production or manufacturing methods can also be considered trade secrets. It’s a very broad category. Determining whether confidential information qualifies as a trade secret in Illinois courts is largely a two-part test. The information must be sufficiently secretive to produce or to result in economic value to you or to your business. You took reasonable steps to protect that information, device, or process…Read More
Ending a vendor relationship can feel risky, especially when long-term contracts or critical services are involved. In this article, we discuss… Key factors to consider when terminating vendor contracts in Illinois. How contract clauses are enforced. Pow contract clauses are enforced. What Legal Grounds Justify Terminating A Vendor Contract Under Illinois Law? The vast majority of vendor contracts already contain termination provisions. Those provisions typically spell out when, how, and why a contract may be terminated. If no such provision exists, termination may still be possible in certain circumstances. One example is misconduct that occurred prior to the execution of the contract and induced you to enter into the agreement in the first place. Another common ground for termination is a material breach of the contract. If one party’s breach is significant enough to render the contract effectively useless, termination may be justified. A less common, but still…Read More
Non-solicitation agreements are a common tool Illinois businesses use to protect their most valuable relationships, but enforcing them is not always straightforward. In this article, we explore… How non-solicitation clauses in Illinois work and how they differ from non-compete agreements. What courts look for when deciding whether these clauses are enforceable. The evidence required to prove a violation, and when businesses should consider involving legal counsel. What Is A Non-Solicitation Clause In Illinois, And How Does It Differ From A Non-Compete Agreement? While both are restrictive covenants and are used to protect business interests, they serve different purposes. A non-solicitation agreement prohibits a departing employee, or, in some cases, a client, from actively poaching or recruiting your clients, customers, or employees for a set period of time. A non-compete agreement, on the other hand, restricts individuals from working for a competitor, either by starting a competing business or…Read More
When a third party disrupts a business relationship, the damage can be immediate and costly. In this article, we break down… How tortious interference in Illinois works, and what proof is required. How courts distinguish lawful competition from wrongful conduct. When businesses should involve legal counsel. What Is Tortious Interference Under Illinois Business Law? Tortious interference under Illinois law generally occurs when a third party seeks to interfere with or disrupt a company’s existing contractual or business relationship in a way that ultimately causes harm. There are two most common types of tortious interference. One is tortious interference with contract, and the other is tortious interference with business expectancy, sometimes also referred to as tortious interference with prospective economic advantage. Each has different legal requirements. That said, there is some commonality between the two. Generally, you must either have a valid contract or a reasonable expectancy of entering…Read More
As the year winds down, many businesses face contract disputes, unpaid invoices, or partnership disagreements that they’d like to resolve before closing the books. For companies seeking a faster and more confidential option than traditional litigation, business arbitration in Illinois can be an attractive solution. In this article, we explain… How arbitration for contract disputes works. When arbitration is most effective. What advantages it offers to Illinois businesses, particularly at the end of the year. Why Is Arbitration An Effective Dispute Resolution Option For Businesses During Q4? It’s uncommon for any dispute to be fully resolved within a three-month span, though some can be. Generally speaking, arbitration can be an effective option later in the year because it offers a faster and more confidential alternative to traditional litigation. Litigation can take years to move forward. Even serving a lawsuit and receiving a response can take over a month,…Read More
The holiday season is a time of celebration and heightened activity, but also one of the riskiest times of year for businesses when it comes to fraud. From increased transaction volumes to distracted staff, the conditions are ideal for dishonest activity to slip through the cracks. In this article, we’ll discuss… Why fraud spikes at year-end and the most common internal schemes. How companies like yours can strengthen their defenses. The role of an attorney in helping you mitigate liability. Why Does Business Fraud Tend To Spike During The Holiday And Year-End Season? There are several reasons, and they can vary depending on the industry. Generally speaking, business fraud tends to spike during the holidays because a perfect storm is at play: increased opportunity, distracted employees, and higher transaction volume all converge at the same time. Fraudsters take advantage of these conditions. With people busy shopping, closing year-end…Read More
When policyholders pay premiums, they expect their insurance companies to act in good faith and promptly investigate and pay valid claims. Unfortunately, that doesn’t always happen. In this article, we’ll break down… What constitutes bad faith insurance practices in Illinois. How these practices happen and what damages may be recoverable. When to seek legal help if you believe your insurer isn’t acting fairly. What Is Considered Bad Faith By An Insurance Company Under Illinois Insurance Law? Generally speaking, an insurance company acts in bad faith when its conduct toward a policyholder is unreasonable or vexatious. This can include deliberate, unfair, or dishonest behavior such as unnecessary delays, unreasonable denials of valid claims, or lowball settlement offers. Essentially, when an insurer fails to handle a claim in a fair and timely manner, it may be engaging in bad faith. What Are Common Examples Of Bad Faith Insurance Claim Handling?…Read More