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AEI Law, P.C., is The Hero's Law Firm A.E.I. Law®, P.C. Intellectual Property Lawyer

is a full service business and intellectual property law firm offering an outside business and legal affairs department to artists, entrepreneurs, and innovators.

Top 5 Steps When a Client or Vendor Breaches a ContractA suspected breach of contract can create immediate financial and...
10/20/2026

Top 5 Steps When a Client or Vendor Breaches a Contract

A suspected breach of contract can create immediate financial and operational pressure. A business should respond carefully rather than reacting through an angry email or abrupt termination.
1. Review the Contract
Identify the relevant obligations, deadlines, payment terms, notice provisions, cure periods, termination rights, dispute-resolution clause, and limitations on damages. Determine whether the agreement requires written notice before filing a lawsuit.
2. Gather Evidence
Preserve the signed agreement, amendments, invoices, emails, text messages, delivery records, photographs, meeting notes, performance records, and communications concerning the breach.
Create a timeline showing what happened, when it happened, and how the breach affected the business.
3. Evaluate Whether Performance Should Continue
A business should not automatically stop performing. Depending on the agreement and the seriousness of the breach, suspension may create a claim that the business breached first.
Consider whether performance can continue while reserving rights, whether a cure is possible, and whether the contract permits termination.
4. Send a Focused Notice
A breach notice should identify the agreement, describe the alleged breach, state the requested cure, and provide the deadline required by the contract. It should avoid unnecessary accusations or statements that could later be used against the business.
If the dispute involves nonpayment, the notice should identify the invoice or amount due. If it involves defective performance, the notice should identify the deficiency and requested correction.
5. Assess Remedies and Strategy
Potential remedies may include damages, specific performance in limited circumstances, termination, restitution, interest, attorneys’ fees if authorized, or negotiated resolution. The business should evaluate mitigation and avoidable losses.

Do Not Ignore Fraud or Other Claims
A contract dispute may also involve fraud, fraudulent inducement, negligent misrepresentation, conversion, intentional interference, or unfair competition. A business should avoid labeling conduct as fraud without evidence of the required intent and reliance.
The response strategy depends on the contract, the facts, the amount at issue, the relationship, and the likelihood of continued business. Mediation or a negotiated amendment may be appropriate in some cases. Litigation may be necessary in others.
Prompt review can preserve options and prevent the dispute from becoming more costly.

Disclaimer: This is just information, not legal advice. To discuss your specific situation with an attorney, contact AEI Law PC at (888) 423-4529 or visit www.aeilaw.com.

Top 10 Mistakes Leading to Breach of Contract DisputesA breach-of-contract dispute often begins with an unclear agreemen...
10/12/2026

Top 10 Mistakes Leading to Breach of Contract Disputes

A breach-of-contract dispute often begins with an unclear agreement or a preventable communication problem. Businesses can reduce risk by identifying obligations and documenting performance.
1. Failing to Define the Scope
If the contract does not clearly describe the work, the parties may disagree about what was promised.
2. Leaving the Price Unclear
The agreement should state the price, payment schedule, expenses, taxes, and conditions for additional charges.
3. Ignoring Deadlines
Missed milestones, delivery dates, approval periods, and notice deadlines can create a breach claim.
4. Making Unapproved Changes
Employees and contractors may modify a project without authority. Contracts should identify who may approve changes and how modifications must be documented.
5. Failing to Give Notice
Many agreements require prompt notice of delay, defects, nonpayment, or anticipated nonperformance. A party that fails to give required notice may affect its rights.
6. Treating a Material Breach as Minor
A material breach may excuse the other party’s future performance, depending on the contract and circumstances. Businesses should evaluate the seriousness of the breach before suspending performance.
7. Ignoring the Implied Covenant
California contracts generally include an implied covenant of good faith and fair dealing. Parties should not deliberately frustrate the agreement’s benefits or use contractual discretion in a way that defeats the other party’s rights.
8. Failing to Preserve Evidence
Emails, invoices, change orders, photographs, time records, and delivery confirmations may become important evidence. Businesses should preserve records when a dispute appears likely.
9. Assuming a Breach Automatically Creates a Large Recovery
Contract damages generally must be proven and cannot be speculative. The claimant may need to prove causation, foreseeability, mitigation, and the amount of loss.
10. Waiting Too Long to Respond
A business should evaluate a suspected breach promptly. Delay may increase damages, impair mitigation, or create statute-of-limitations concerns.

Common Breach-of-Contract Claims
A California breach-of-contract cause of action commonly involves a contract, the plaintiff’s performance or excuse for nonperformance, the defendant’s breach, and resulting damage. The facts may also raise defenses such as failure of consideration, waiver, modification, mistake, duress, impossibility, or statute of frauds.

The contract should be reviewed as a whole. One clause may affect another, and a remedy provision may limit or expand available relief.
A business litigation attorney can help evaluate whether the issue is nonperformance, defective performance, delay, repudiation, payment failure, or a different business tort such as fraud or conversion.

Disclaimer: This is just information, not legal advice. To discuss your specific situation with an attorney, contact AEI Law PC at (888) 423-4529 or visit www.aeilaw.com.

3 Key Things Business Owners Must Know About Quantum ValebantQuantum valebant is a restitutionary concept concerning the...
10/08/2026

3 Key Things Business Owners Must Know About Quantum Valebant

Quantum valebant is a restitutionary concept concerning the reasonable value of goods provided when a valid contract does not establish the seller’s right to payment. The Latin phrase is commonly translated as “as much as they were worth.”

California business owners may encounter quantum valebant issues in disputes involving deliveries, accepted goods, failed contracts, or disputed purchase terms.

1. Quantum Valebant Concerns Goods, Not Services
Quantum meruit generally concerns the reasonable value of services. Quantum valebant traditionally concerns the reasonable value of goods. For example, a supplier may deliver products that a buyer accepts and uses, but the parties later dispute whether a binding purchase contract was formed.
The seller may investigate whether a restitutionary claim for the value of the goods is available.

2. Acceptance and Benefit Matter
A quantum valebant theory usually depends on evidence that the goods were delivered, accepted, retained, used, or otherwise benefited the recipient. Delivery alone may not resolve every issue, particularly where the recipient rejected the goods, returned them, or disputed the quantity or quality.
Relevant evidence may include purchase orders, bills of lading, delivery confirmations, invoices, emails, inventory records, photographs, and communications about acceptance.

3. The Claim Is Not a Substitute for Every Contract Dispute
If a valid contract governs the sale, the dispute may be analyzed as a breach-of-contract claim under the applicable sales law. Quantum valebant may be relevant when the contract is missing, unenforceable, incomplete, or does not resolve compensation.
The amount recoverable is not necessarily the seller’s invoice amount. The business may need to establish the reasonable value of the goods and address offsets, defects, returns, credits, or other defenses.

Quantum Valebant and Goods Sold and Delivered
California businesses sometimes describe related claims as goods sold and delivered, payment claims, money had and received, restitution, or quantum valebant. The proper theory depends on the transaction and available evidence.

A supplier should document delivery and acceptance at the time of the transaction. A buyer should promptly communicate rejection, defects, shortages, or unauthorized deliveries.
The difference between quantum meruit and quantum valebant is useful shorthand, but the facts control. Services, goods, contracts, and restitution theories should not be treated as interchangeable.

Disclaimer: This is just information, not legal advice. To discuss your specific situation with an attorney, contact AEI Law PC at (888) 423-4529 or visit www.aeilaw.com.

5 Key Things to Know About Implied Contracts in CAThe phrase “implied contract” may describe more than one legal concept...
10/05/2026

5 Key Things to Know About Implied Contracts in CA

The phrase “implied contract” may describe more than one legal concept. Understanding the difference between an implied-in-fact contract and an implied-in-law obligation is important in California business disputes.

1. An Implied-in-Fact Contract Is Based on Conduct
An implied-in-fact contract is formed by the parties’ actions and circumstances. The agreement is not written, but conduct may demonstrate offer, acceptance, consideration, and mutual assent.
Examples include repeated services, accepted deliveries, regular payment, and conduct consistent with an agreed business arrangement.

2. An Implied-in-Law Obligation Is Different
An implied-in-law contract is generally not a true agreement. It is a legal obligation imposed to prevent one party from unfairly retaining a benefit. It is often associated with restitution, unjust enrichment, or money had and received.
The distinction matters because the elements and available remedies differ.

3. Evidence Is Critical
A claim based on an implied contract may rely on emails, text messages, invoices, purchase orders, performance records, payment history, customer communications, witness testimony, and industry practice.
The parties’ conduct should be evaluated as a whole. One isolated act may not establish a contract, while a consistent course of dealing may be persuasive.

4. The Terms Must Be Sufficiently Definite
A court generally needs enough information to determine what the parties agreed to do. If the price, scope, timing, or other essential term is too uncertain, enforcement may be difficult.
California contract law seeks to give effect to mutual intention when it can be ascertained. Cal. Civ. Code § 1636 reflects this basic principle.

5. Some Agreements Must Be Written
The fact that parties acted as though they had a deal does not eliminate statute-of-frauds requirements. Certain contracts, including some real-estate agreements and agreements incapable of performance within one year, may require a writing.

Implied Contracts and Business Litigation

Implied-contract claims often arise when a business provides services without a final agreement, when a vendor continues performance after an agreement expires, or when parties dispute whether a proposal was accepted.

A business should avoid assuming that no contract exists merely because no document was signed. It should also avoid assuming that conduct alone proves every term it wants to enforce.

The best practice is to confirm important arrangements in writing. A short confirmation email can identify the scope, price, schedule, and key conditions while the parties prepare a complete contract.

Disclaimer: This is just information, not legal advice. To discuss your specific situation with an attorney, contact AEI Law PC at (888) 423-4529 or visit www.aeilaw.com.

5 Warning Signs Your Business Deal Needs a Written ContractSome business arrangements begin informally. A conversation, ...
10/01/2026

5 Warning Signs Your Business Deal Needs a Written Contract

Some business arrangements begin informally. A conversation, email, or handshake may be enough to start a relationship, but certain warning signs indicate that the parties should create a written contract before proceeding.

1. The Deal Involves Significant Money
The greater the financial exposure, the more important it is to document price, payment, deposits, refunds, expenses, and remedies. A written contract can reduce uncertainty if a party fails to pay or perform.
2. Performance Will Continue Over Time
Long-term services, subscriptions, construction, consulting, licensing, and supply relationships require clear terms. The agreement should address renewal, termination, price changes, delays, and performance standards.
3. One Party Will Rely on the Other
If a business will hire staff, buy equipment, reserve capacity, turn away another customer, or incur expenses based on a promise, the promise should be documented. Reliance can create disputes involving breach, promissory fraud, or misrepresentation.
4. Intellectual Property or Confidential Information Is Involved
Whenever a party will receive software, customer information, designs, trade secrets, business plans, or proprietary materials, the parties should address confidentiality, use restrictions, ownership, return, and security.
5. The Parties Use Different Language About the Deal
Statements such as “we can work out the details later,” “this is just a formality,” or “the email is not important” may signal that the parties do not share the same understanding. A written contract is especially important when the parties disagree about price, timing, scope, ownership, or authority.

Oral Agreements Can Still Create Liability

California law recognizes certain oral contracts, and parties may also create an implied-in-fact contract through conduct. But the absence of a writing may make it difficult to prove what was promised.

A written agreement should not merely memorialize the deal after the fact. It should identify the parties, define the exchange of value, describe performance, allocate risk, and provide a process for resolving disputes.

Electronic signatures may be legally effective in California, but the parties should preserve the final signed version and any incorporated exhibits.

A short written agreement is generally better than an elaborate misunderstanding. When a business relationship matters, documentation is part of risk management not an indication that the parties distrust each other.

Disclaimer: This is just information, not legal advice. To discuss your specific situation with an attorney, contact AEI Law PC at (888) 423-4529 or visit www.aeilaw.com.

Top 7 Reasons Founder Agreements Protect New BusinessesA founder agreement helps define the relationship among people st...
09/28/2026

Top 7 Reasons Founder Agreements Protect New Businesses

A founder agreement helps define the relationship among people starting a business together. It can address issues that are easy to ignore when the company is new but difficult to resolve after money, customers, and intellectual property are involved.
1. It Clarifies Ownership
The agreement should identify each founder’s ownership interest and explain whether ownership vests over time. Vesting can help address the situation in which a founder leaves shortly after the business begins.
2. It Documents Contributions
Founders may contribute cash, labor, technology, equipment, contacts, or intellectual property. A written agreement can identify the agreed value and whether the contribution creates ownership, repayment rights, or compensation.
3. It Defines Responsibilities
A founder agreement can explain who manages sales, finances, operations, technology, hiring, compliance, and customer relationships. Clear responsibilities reduce duplication and disagreement.
4. It Establishes Decision-Making Rules
The agreement should address ordinary decisions, major transactions, borrowing, hiring executives, issuing equity, selling assets, and changing the business model. Voting and consent requirements should be specific.
5. It Protects Intellectual Property
Founders should determine whether inventions, software, designs, content, trademarks, domain names, and business materials belong to the company or an individual founder. The company should receive appropriate assignments and licenses.
6. It Addresses Departures
The agreement can establish procedures for resignation, termination, death, disability, bankruptcy, and disputes involving a founder. It may address buyouts, confidentiality, return of property, and transition duties.
7. It Provides a Dispute Framework
A founder agreement may require negotiation, mediation, arbitration, or litigation. It can also include governing-law, venue, notice, and attorneys’ fees provisions.

Founder Agreement Versus Operating Agreement
An LLC generally should have an operating agreement. A corporation may need bylaws, shareholder agreements, stock-purchase documents, and board approvals. A founder agreement may supplement those documents, but the documents should be coordinated.

The company’s legal structure should match the founder agreement. A document written for a corporation may not work for an LLC or partnership.

A founder agreement cannot eliminate every disagreement. It can, however, provide a written record of ownership and expectations. It also forces founders to discuss difficult subjects before the business has substantial value.

Early legal planning is particularly important when founders contribute unequal amounts, bring preexisting intellectual property, expect different levels of involvement, or anticipate outside financing.

Disclaimer: This is just information, not legal advice. To discuss your specific situation with an attorney, contact AEI Law PC at (888) 423-4529 or visit www.aeilaw.com.

Top 8 Legal Mistakes Business Startups Make in Year OneThe first year of a startup often involves rapid growth, limited ...
09/24/2026

Top 8 Legal Mistakes Business Startups Make in Year One

The first year of a startup often involves rapid growth, limited resources, and informal decision making. Those conditions can create legal problems that become more expensive as the business grows.

1. Failing to Choose and Document an Entity
A founder should understand whether the business is a sole proprietorship, partnership, LLC, or corporation. If multiple people are involved, ownership and management should be documented immediately.
2. Leaving Founder Contributions Unclear
Founders may contribute cash, equipment, labor, intellectual property, relationships, or time. A founder agreement should identify those contributions and explain ownership, vesting, repayment, and future responsibilities.
3. Relying on Handshake Deals
Oral agreements can be enforceable, but they are difficult to prove when parties remember different terms. Written contracts should cover customers, vendors, contractors, loans, leases, and strategic relationships.
4. Failing to Assign Intellectual Property
A startup may own less intellectual property than it believes. Employees and contractors should sign appropriate confidentiality and intellectual property agreements. The documents should address inventions, copyright, software, designs, trademarks, and trade secrets.
5. Misclassifying Workers
California worker-classification rules can expose startups to wage, expense, tax, and penalty claims. A startup should not rely solely on contractor labels, invoices, or W-9 forms.
6. Ignoring Privacy and Data Security
A startup that collects customer information may face contractual, regulatory, and reputational consequences from poor data practices. Privacy notices, security procedures, vendor controls, and incident-response plans may be necessary.
7. Making Unsupported Business Claims
Marketing statements about performance, savings, results, certifications, or customer outcomes should be accurate and supportable. Misleading statements can create fraud, negligent misrepresentation, false advertising, or unfair competition concerns.
8. Waiting to Seek Legal Advice
Startups often seek help only after receiving a demand letter or facing a breach-of-contract lawsuit. Early review of formation documents, employment practices, intellectual property, and contracts can prevent avoidable disputes.

Building a Legal Foundation

A startup’s legal foundation should match its business model. A technology company may need software licenses, privacy provisions, data-security terms, and intellectual property assignments. A professional services business may need engagement agreements, limitation-of-liability language, insurance, and payment procedures. A consumer-facing business may need carefully drafted terms, refund policies, and regulatory compliance.

The first year is also a good time to create a recordkeeping system. Maintain signed agreements, amendments, invoices, approvals, meeting minutes, ownership records, payroll records, and intellectual property documentation.

No legal structure eliminates business risk. But a startup that identifies its obligations early is better positioned to grow, raise capital, negotiate with customers, and respond to disputes.

Disclaimer: This is just information, not legal advice. To discuss your specific situation with an attorney, contact AEI Law PC at (888) 423-4529 or visit www.aeilaw.com.

Top 10 Considerations Before Forming a California LLCA California limited liability company can be an effective business...
09/21/2026

Top 10 Considerations Before Forming a California LLC

A California limited liability company can be an effective business structure, but forming an LLC involves more than filing articles of organization. Founders should evaluate ownership, management, liability, taxation, contracts, intellectual property, and compliance before deciding that an LLC is appropriate.
1. Number and Type of Owners
An LLC may have one member or multiple members. The owners may be individuals, trusts, corporations, or other entities, subject to applicable law. Ownership should be documented clearly.
2. Management Structure
The operating agreement should state whether the LLC is member-managed or manager-managed. It should identify voting rights, authority, approval requirements, and procedures for major decisions.
3. Ownership Percentages
The agreement should address contributions, ownership percentages, profits, losses, distributions, and future capital calls. Ownership should not be left to informal assumptions.
4. Personal Liability
An LLC generally provides a liability shield for business debts and obligations, but that shield is not absolute. Members may remain personally liable for their own conduct, personal guarantees, certain taxes, and obligations outside the entity.
5. Separate Business Operations
The LLC should maintain separate finances and records. Commingling funds, failing to observe entity formalities, or using the LLC as an alter ego may create arguments for personal liability.
6. Tax Treatment
An LLC’s tax treatment may depend on the number of members and elections made with tax authorities. Business owners should coordinate entity planning with qualified tax professionals.
7. Buy-Sell and Exit Provisions
The operating agreement should address death, disability, divorce, bankruptcy, voluntary departure, deadlock, termination, and sale of a member’s interest. A clear buy-sell process can reduce future conflict.
8. Intellectual Property Ownership
The LLC should own or properly license its business name, website, content, software, designs, customer lists, and other intellectual property. Founders should consider assignments from members, employees, and independent contractors.
9. Employment and Contractor Issues
Forming an LLC does not eliminate employment obligations. The company should analyze worker classification, wage requirements, payroll, benefits, confidentiality, and intellectual property assignments.
10. Ongoing Compliance
An LLC may have tax filings, statements of information, licenses, permits, insurance, recordkeeping, and contractual requirements. A business formation attorney can help create a compliance calendar.
LLC Versus Sole Proprietorship
A sole proprietorship is generally the individual owner’s business rather than a separate liability shield. The owner may have control and simplicity but also personal exposure for business obligations.
An LLC can provide a separate legal structure, but it may involve formation costs, annual obligations, operating agreements, and more formal administration. The right choice depends on the business and owner’s circumstances.

Is an LLC Always the Right Choice?
Not necessarily. A corporation may be more suitable for certain businesses seeking outside investment or a particular equity structure. A partnership may be appropriate for some co-owned ventures, although a written partnership agreement is important. A sole proprietorship may be sufficient for a low-risk activity, but the owner should understand the liability consequences.

Before forming an LLC in California, founders should consider the business’s risk profile, owners, financing plans, tax objectives, intellectual property, and exit strategy.
Disclaimer: This is just information, not legal advice. To discuss your specific situation with an attorney, contact AEI Law PC at (888) 423-4529 or visit www.aeilaw.com.

Top 5 Online Contract Template Mistakes Businesses MakeOnline contract templates can be useful starting points, but a te...
09/17/2026

Top 5 Online Contract Template Mistakes Businesses Make

Online contract templates can be useful starting points, but a template is not a substitute for analyzing a particular transaction. Businesses often encounter problems when they treat a generic form as a complete legal solution.

1. Using a Template That Does Not Fit the Transaction
A contractor agreement, software license, commercial lease, employment agreement, purchase agreement, and intellectual property assignment serve different purposes. A form designed for one transaction may omit essential terms for another.
The first question should be whether the template addresses the actual relationship and the business’s most important risks.
2. Failing to Adapt the Governing Law
A form prepared for another state may use different rules concerning non-compete provisions, damages, indemnity, consumer protections, employment classification, or dispute resolution. California contract law may differ substantially from the law in another jurisdiction.
A business should not assume that a provision is enforceable simply because it appears in a widely used template.
3. Leaving Critical Blanks Uncompleted
Businesses sometimes overlook blank spaces concerning the parties, payment, term, scope of work, ownership, notice, or termination. An incomplete contract can create ambiguity or make it difficult to determine what the parties intended.
Every blank, checkbox, exhibit, and referenced attachment should be reviewed.
4. Ignoring Intellectual Property Ownership
Templates often include generic language about ownership but fail to address preexisting materials, derivative works, source files, licenses, moral rights, trademarks, or copyright registration. When a business hires a designer, developer, photographer, writer, or consultant, ownership should be stated clearly.
A work-made-for-hire provision may not cover every type of commissioned work. A present assignment of rights may also be appropriate.
5. Assuming the Template Covers the Entire Relationship
A contract template may not address insurance, data security, confidentiality, customer information, regulatory requirements, employee classification, change orders, or industry-specific risks. It may also fail to match the parties’ actual conduct.
A contract that says one thing while the parties consistently do something else may create litigation risk.

When Should a Business Use a Lawyer?
A business should consider legal review when the transaction involves substantial money, long-term obligations, intellectual property, personal guarantees, exclusivity, indemnity, confidentiality, customer data, real estate, employment, or a potentially serious breach.

A lawyer can identify provisions that should be removed, revised, or added. Legal review can also help ensure that the contract is internally consistent and that the business’s expectations are actually reflected in the language.
An online form may save drafting time, but a poorly adapted contract can create uncertainty. In a business dispute, the most important terms may be the terms a template failed to include.

The best use of a template is often as a checklist or starting point—not as an automatic final agreement.

Disclaimer: This is just information, not legal advice. To discuss your specific situation with an attorney, contact AEI Law PC at (888) 423-4529 or visit www.aeilaw.com.

Top 7 California Small Business Contract Terms to ReviewA small business may sign contracts with customers, vendors, lan...
09/14/2026

Top 7 California Small Business Contract Terms to Review

A small business may sign contracts with customers, vendors, landlords, contractors, employees, lenders, licensors, and business partners. Before signing, the business should review more than the price. Contract language can affect performance obligations, liability, intellectual property, termination rights, and the ability to resolve a dispute.

1. Scope of Work
The contract should clearly describe what each party must provide. Vague descriptions can create disputes about whether a service, product, revision, delivery, or support obligation was included.

The agreement should identify deliverables, specifications, deadlines, milestones, acceptance procedures, and the person authorized to approve performance.

2. Payment Terms
Review the price, deposit, invoice requirements, payment deadlines, late charges, expenses, taxes, retainers, commissions, and conditions for withholding payment. A contract should also explain what happens if the customer disputes an invoice.
For a sale of goods, additional rules may apply under the California Commercial Code and the Uniform Commercial Code.

3. Term and Termination
A contract should state when it begins, how long it lasts, and how either party may terminate it. Termination provisions may include termination for convenience, termination for cause, cure periods, insolvency, nonpayment, or material breach.
The agreement should also explain what happens after termination, including payment for completed work, return of property, transition assistance, confidentiality, and continued license rights.

4. Representations, Warranties, and Disclaimers
A representation is a statement about an existing fact. A warranty is a contractual promise concerning performance or quality. Businesses should identify what is being promised and whether disclaimers or limitations modify those promises.
A business should avoid making guarantees that it cannot support. Overly broad representations can create breach-of-contract or fraud-related disputes.

5. Intellectual Property Ownership
The contract should specify who owns preexisting materials, new work product, data, software, designs, trademarks, copyrights, and improvements. If a contractor is creating materials, the agreement should include appropriate assignment language and, where relevant, a valid work-made-for-hire provision.
Ownership should not be left to assumptions.

6. Indemnity and Limitation of Liability

Indemnity provisions may require one party to defend or reimburse the other for specified claims. Limitation-of-liability clauses may exclude certain damages or cap recovery. These provisions can materially change the economic risk of the contract.
The language should be reviewed for scope, exclusions, insurance requirements, and enforceability.

7. Dispute Resolution and Governing Law
Review whether disputes must be resolved in court, arbitration, or mediation. The contract may also select a county, state, or federal forum and identify the governing law.
Venue and arbitration clauses can affect cost, timing, discovery, appeal rights, and available remedies.

Other Provisions Worth Reviewing

Depending on the transaction, a small business may also need to review confidentiality, non-solicitation, data security, force majeure, assignment, change orders, audit rights, compliance obligations, attorneys’ fees, notices, integration, and amendment provisions.

California contract law generally seeks to enforce the parties’ lawful agreement, but unclear or conflicting language can produce uncertainty. Cal. Civ. Code § 1636 states that a contract should be interpreted to give effect to the parties’ mutual intention as it existed when they contracted, if that intention can be determined and is lawful.

A business should understand the contract before signing rather than discovering its meaning after a dispute begins.

Disclaimer: This is just information, not legal advice. To discuss your specific situation with an attorney, contact AEI Law PC at (888) 423-4529 or visit www.aeilaw.com.

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