Virtual General Counsel LLC
Helping Startups And Complex Business Clients Services Throughout Denver And The Surrounding Areas
Phone: 303-395-0259 Toll Free: 800-229-1646

Denver Business & Commercial Law Blog

Building better business contracts in Denver

Owning and operating a small business in the Denver, Colorado, region usually means that you will need to create one or more business contracts. The days in which parties made agreements by way of a simple handshake have faded away. Now, business owners need much more protection than they might have needed in those bygone days.

Our attorneys have a great deal of experience helping people build fair and effective agreements in written contract form. This experience has given us much insight into what makes contracts function well and what can make them fall apart. We would like to share some of our insight with those operating a business in the area. The following tips can make certain your business contracts always work to protect your best interests.

Mergers a Acquisitions: Tips for small business mergers in Denver

Creating a merger between two separate businesses usually comes with many benefits for the small business owner. Examples of such benefits include:

  • Lower operating costs
  • Access to new clients
  • Opportunities to collaborate
  • Increased product research and development

Unfortunately, the field of mergers and acquisitions seems especially complex to small business owners in the Denver region. As a result, many of them hesitate to consider a business merger, even when they are struggling to continue operating.

A fear of mistakes can derail your business formation efforts

Creating a new business is exciting and scary at the same time. Many entrepreneurs in the Denver area reach a stage during their business formation efforts when their fear of making serious mistakes becomes overwhelming.

There are two common responses to this fear:

  • The entrepreneur gives in to fear and immediately suspends all efforts to move forward.
  • The entrepreneur overcomes their fear and is imbued with a fresh desire to make their business come to life.

Explore the potential downsides of buying a franchise

Recently, this blog featured a post discussing why someone might choose to buy a franchise. While the benefits of choosing a franchise are many, it is also wise for those looking into business formation to learn about the possible disadvantages of owning a franchise. First, a very brief outline of some advantages associated with franchise ownership.

  • A franchise offers a proven business model
  • Access to comprehensive training programs
  • You will have instant name and brand recognition
  • Access to advertising and marketing materials
  • Small business loans are more accessible with a franchise

Of course, nothing good ever comes without a few downsides as well. Learning about the cons of particular models is always a good idea when you are entering into business formation activities. The disadvantages most often associated with buying and operating a franchise include the following.

  • The initial startup costs of owning a franchise can reach hundreds of thousands of dollars
  • Even though you own the franchise, you must still adhere to the franchise's rules and regulations
  • In most cases, owning a franchise means you must enter into strict business contracts and agreements
  • You will likely have to pay royalties on your franchise
  • You could be vulnerable to financial loss and reputation damage if the brand itself ever suffers a scandal

What damages are available for breach of a business contract?

Most members of Denver's small business community know that airtight contracts contribute to the success and growth of a business. As such, these business owners take careful steps to ensure that their contracts are precise and detailed. Unfortunately, entities on the other side of a contract may still choose to violate the terms of such a document.

When someone breaches a contract, the business owner has the right to pursue a legal remedy. Exercising this right serves several functions such as deterring future breaches and compensating the company owner for his or her losses. The types of damages company owners in Colorado may pursue include the following.

  • Compensatory damages: This ensures that you recover some or all of the financial losses suffered if another party breaches a business contract.
  • Nominal damages: Often, a business owner receives a small monetary award if he or she suffered little or no financial losses after a breach of contract.
  • Punitive damages: Rarely, a judge may award punitive damages to punish the party who violated a contract. It also serves as a good way to deter parties from breaching contracts in the future.
  • Liquidated damages: Many business contracts include specific provisions to compensate the injured party if another party violates the terms of a contract.

Before signing, seek legal support with contract questions

A good contract can place a Colorado business in a strong position for the future. Whether it is for securing a useful vendor, leasing a new location for operations or hiring a critical employee, a well-drafted contract can provide a business with security and confidence in their actions. Not long ago this blog discussed the basic elements of a contract, but depending upon what type of contract a business needs to execute, the terms of the agreement may vary from those of others.

For example, employment-based contracts may discuss benefits and pay terms, partnership options, and other matters related to keeping business positions filled. Contracts that cover materials or supplies may focus on quantities, product details, price and delivery terms. A contract for a new corporate space may discuss rent, modifications to the space and penalties for nonpayment.

The elements of a basic contract

Contracts are an essential component of many business relationships. When a small Colorado business chooses to hire a new employee or work with a new vendor it will likely create and execute a contract to govern the terms of their relationship. Contracts, also called agreements, are based on an offer and an acceptance of the offered terms.

A party can offer to do or not do something to form the basis of a contract. The party that has received the offer can accept it outright, reject it or may counter-offer modified terms to the offering party. When a party agrees to accept an offer, it must offer valuable consideration - often a payment in the form of money - in order to secure the terms of the agreement.

Why might someone want to own a franchise?

We all have our favorite franchises, whether they are department stores, fast food restaurants or other popular business establishments. In fact, many franchises are now household names and have seen decades of success.

Some people in Denver wishing to establish their own business will choose to do so through franchising.

Corporate acquisitions hit the cannabis industry

As Colorado's legalized cannabis industry grows, large corporations are taking notice.

Starting November 1, publicly traded companies could legally invest in our state's cannabis businesses, and within days one of Colorado's biggest cannabis dispensary chains announced it had been sold. Canada's Columbia Care, Inc., acquired Colorado's Green Solution for a reported $140 million.

Social media policy changes can cause havoc for small businesses

Social media has upended the traditional ways businesses advertise and generate word-of-mouth among their customers and potential customers. Many small businesses in the Denver area have built their entire media strategies around social media. However, these strategies can be destroyed overnight when the social media companies change the ways they present a business' posts.

Many Denver businesses were concerned by news that the popular, photography-centered social media service Instagram is experimenting with changing the way it presents "likes," the indicators in which users show their appreciation for a post. Under the experiment, Instagram will begin hiding the number of likes on some users' posts. These users will be able to see how many likes their posts received, but the public will not.

Contact

Virtual General Counsel LLC
7900 E Union Ave
Suite 1100
Denver, CO 80237

Toll Free: 800-229-1646
Phone: 303-395-0259
Fax: 303-766-0990
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