This is another case that perfectly illustrates the hazards of cocktail talk, those loose conversations that turn into a serious intent to execute on a general plan. The more people involved in the discussions, the more likely there will be misunderstandings among those involved in the planning.
One immense problem all business owners need to face at some point is the issue of succession. When a deal qualifies for bank financing, the seller receives the sale proceeds as a lump sum that makes them financially independent and able to retire.
This example illustrates the hazards of going too far into the start of a transaction based on “cocktail talk”, meaning generalities, pleasantries, and a handshake without any professional transactional advice.
When entrepreneurs are in the planning stage of a new venture, that is the time when I want to take a holistic approach and be apprised of key parts of the business plan to evaluate and assess the prospects for a smooth start up and long-term business success. If allowed, I get beyond the broad vision and into the gritty details.
Attorneys are often called upon to serve individuals on a “pro bono basis”. This case involved a careful analysis of a complex situation, soliciting expert engineering advice, negotiations with Town officials and an implied threat of litigation which I convinced the Town it would lose.
A joint venture is defined as two or more individuals working together on a common business purpose under a common banner. There is great danger if the planning, creation and amending of organizational documents are inadequate.
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