One increasingly common portion of employment agreements is a non-compete agreement, designed to keep an employee from leaving one business and immediately competing with their prior employer. There has been some debate in the courts about the extent to which these non-compete clauses are enforceable and there are some good rules of thumb for businesses looking to use non-compete agreements. Non-compete agreements are generally unenforceable in the state of California. To be valid, a non-compete agreement must be given in exchange for some form of consideration, meaning that the employee receives something of value, such as a job, some company... READ MORE

When you bring someone into your company as an employee or contractor, they may have access to vital trade secret information like client files and lead records. A non-solicitation agreement is an agreement, generally as a portion of a larger employment contract, in which the employee agrees not to solicit your clients and customers after leaving your employment. Some also include an agreement that the employee will not try to hire other employees from your business when they leave. Non-solicitation agreements, while often presented as part of the initial contracts signed upon engagement, they can be presented at any point... READ MORE

In the world of startup businesses, especially those related to social media and technology, a common story unfortunately repeats itself. Individual buddies formulate a viable business idea and away they go with it, fast and furious into the business world with nothing memorialized in writing. Soon, the revenue is flowing and suddenly relationships sour, disagreements occur, and the fight begins over ownership of the enterprise. Billion dollar companies like Facebook, Uber, and Snapchat, all feature a similar set of events within the history of their existence. Technology companies grow rapidly in size and quickly gain financing, resulting in exorbitant amounts... READ MORE

Emails and text messages are the 21st Century's preferred forms of communication. This is especially true in the real estate industry where buyers and sellers network and communicate with their brokers and agents around the clock, striving to close the perfect deal. To what extent may parties to a real estate transaction, or to any transaction for that matter, actually consummate and close a deal through emails and text messages? In what seems like a landmark case, a Massachusetts court found that text messages between two parties may form a binding, legal contract, even despite no formal offer ever being... READ MORE

The California Supreme Court’s recent decision in Sanchez v. Valencia Holding Company, LLC clarified the definition of unconscionability with respect to arbitration provisions. Moreover, the ruling signaled the Court’s willingness to enforce arbitration agreements in consumer and employment contracts. This finding is particularly significant in light of California’s historical hesitation to enforce arbitration agreements notwithstanding the applicability of the Federal Arbitration Act (FAA), which mandates enforcement of arbitration provisions. The Sanchez decision conforms to the ruling in the United States Supreme court in the pivotal case ofAT&T Mobility LLC v. Concepcion on the issue of the enforceability of arbitration provisions.... READ MORE

When a purchaser acquires a business, assuming the contracts of that business is a major component of the transaction. A wide variety of contracts are utilized in a business to govern relationships and business transactions, including employment, contractor, service provider, customer, licensing and real estate contracts. Below is a review of key legal and practical considerations in assigning contracts in an acquisition. In general, the rights in any contract are freely transferable from one entity to another. However, there are a few notable exceptions to this rule. Where the assignment substantially alters the performance due or risks to the party... READ MORE

This is the second of a three-part series discussing legal steps an entrepreneur, business owner or professional should take when starting and growing a business. Living with your contract means knowing what your business contracts say, and conducting your business consistent with the terms of these agreements. Whether you are starting or growing a business, well-drafted written contracts are critical to your success. Too many business owners rely on “form” or “template” contracts obtained from the internet, an office supply store, or other businesses in their industry. However, when it comes to contracts—one size does not fit all. Contract law... READ MORE