Commercial Law Blog

Businesses lose hundreds of thousands of dollars annually because of NSF (insufficient or non-sufficient funds) checks when those instruments are not honored by the banks the're written on. The business owners must factor in the additional time, frustration, and resources to go after the offenders and their fraud. The business owner could pursue a criminal action, but it's much more costly to pursue criminal penalties. In most jurisdictions, it's necessary to file a... Read More

Your business has not received payment from a debtor corporation (the "corporation")for services rendered or goods delivered by your company.  As you turn the claim over to your attorney for collection, who do you sue?  The corporation for sure as your company's invoice is clearly addressed to the corporation/buyer.  Unfortunately, you never had any of the officers or directors sign a guaranty of the debt, so you think you will not be able to sue... Read More

Because there are many contractors who operate on a shoestring budget, a word of caution concerning the Texas Trust Fund Statute (the "Act").  Unfortunately, many contractors do not know about their exposure, both from a criminal and a civil standpoint, when it comes to their obligation to pay their suppliers and subcontractors who furnish labor and materials to a project.  The Act provides for certain penalties if money leaves the... Read More

As some of the readers know, I am constantly reading legal publications of all types in an effort to stay on top of the areas of law in which I practice.  I frequently come across arbitration provisions in documents my clients pass along for my review.  More often than not I suggest deleting the arbitration provision and I provide my clients with my reasons for that decision.  I recently saw a good list of reasons that should be a part of any... Read More

The vehicle for transfer of an ownership interest in a small business is usually called a buy-sell agreement.  The name of the agreement, however, barely begins to describe the various benefits that it can bring to the owners of the business.  Since most small businesses often pay out most or all of their profits in salaries, an equity interest in the business would be much less valuable if its owner was not assured of being able to sell that interest back to the... Read More