Rinkins Report: Detra Shaw-Wilder’s Rules for Business Agreements

Detra Shaw-Wilder, Esq., shareholder, Kozyak Tropin & Throckmorton
Many times friends, family members and professional associates enter business agreements with thoughts of grandeur and dreams of prosperity. In reality those dreams become nightmares for many prospective business owners as a recent U.S. Small Business Administration study affirm that nearly 80-percent of new businesses fail. A  complex commercial litigation attorney says many of the concerns that impact business failure could be resolved with careful contemplation and a legally binding agreement.
“Usually when people go into business there is a lot of positive energy. Both parties are thinking about the business’s success. They are not necessarily thinking about their protection if things don’t go as planned,” says Detra Shaw-Wilder, a shareholder at Kozyak Tropin & Throckmorton, a Coral Gables, Florida-based law firm.
Shaw-Wilder represents a diverse range of clients in matters brought in state and federal courts, including contract disputes, commercial foreclosures, and employment law disputes. Having been involved in significant litigation, she has a broad range of trial experience in commercial cases and earned Martindale-Hubbell’s highest rating (AV). She recommends all parties take time to think about the legal ramifications of operating together.
“People are often focused on getting the deal done. I encourage people to take time to really think the process through” she advises.
Shaw-Wilder continues: “If you are going to enter a business relationship it is critical that you manage expectations. May sure you there is clarity and legal language that both protects your interest and clearly communicates your terms.”
The 20-year legal veteran offers five considerations before engaging in business agreements:
Start with the End in Mind: “People need to understand what their goals are and use legally binding language, mediation or litigation as tools to accomplish their goals. It is also important to understand what the other party’s goals are.”
Clarify the Details: “Sometimes people have things written on paper. But, they did not actually agree on the definitions. The partners might not be hearing the same thing. For example, one partner may want to re-invest profits into the business. The other partner may want to cash out. It is critical to walk on one accord and have the same philosophy.”
Take a Risk Assessment: “Clients must fully understand the costs and risks associated with engaging the legal process. This assessment includes the costs of litigation, the risks of the final decision being in the jury’s hand, or time away from running your business. In some cases, it may be better to settle the matter.”
Negotiate Post-Resolution Actions: “Both parties must understand how to proceed after the resolution. Is there a no-compete clause? Which party will own the business after all is said-and-done? Who walks away with certain assets ? Understanding your needs and desires helps attorneys advocate for your interests.”
Zach Rinkins, host and producer, Rinkins Report
Zach Rinkins, host and producer, Rinkins Report
Zach Rinkins is the Associated Press award-winning host/producer of the Rinkins Report. Find out more at www.RinkinsReport.com or on Twitter @RinkinsReport and Facebook @RinkinsReport
Read more at https://www.eurweb.com/2014/09/rinkins-report-detra-shaw-wilders-rules-for-business-agreements/#yEJu88GH8UGeGEmF.99

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