5 Common Legal Mistakes That Could Cost You Big Time

 It’s important to be well aware of the legal ramifications that every person is held accountable to, whether they’re an individual or operating as a business. The law is in place to keep chaos at bay, and it helps to ensure everyone abides by the rules that are laid out by the governing body responsible for the country.

With that being said, there are some common legal mistakes that are worth knowing because otherwise, they could cost you significantly.

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1. Not putting agreements in writing

Whether you’re making an agreement as an individual with another individual or a business, it’s important that this agreement is in writing.

The reason is that without a written agreement that’s been signed by both parties, you may find it harder to prove accountability for those who are in the wrong.

When you come to make an agreement, you’ll want to make sure that a contract has been drawn up that both parties can agree to on the conditions and consequences should either party want to back out of the agreement or breach it on purpose.

2. Neglecting contracts

Neglecting a contract is definitely something to avoid, and while it can be done purposefully, it can also be done by accident. Not being fully aware of what you’ve signed or the full details of the contract is something that you want to address before you proceed with anything.

Whenever you’re responsible for a contract, you’ll want to make sure you’re looking through every word and paragraph of it. Having a proficient understanding of the contract and getting clarity on anything you don’t get can help make sure you’re complying with everything laid out in the contract.

3. Choosing the wrong business structure

For businesses that often make legal mistakes, it’s often due to picking the legal structure of the company incorrectly. The legal structure of a business, whether it be an LLC, a partnership, or a corporation, has significant financial and legal implications. 

Picking the wrong structure ends up exposing your company assets to potential business debts while also limiting access to funds that might help it flourish. There are tax liabilities, too, that you might have to pay, and that also might be unnecessary and something you should be able to mitigate.

4. Overlooking legal obligations

Legal obligations are something that anyone has when it comes to running a business or agreeing to a contract. 

Businesses in particular will have ongoing legal obligations, whether that’s complying with labor laws or being responsible for staff in the workplace. It’s worth knowing the right law firms, like Peterson Law Office, whether you’re at the receiving end of a legal obligation that’s been overlooked or you’ve caused the issue specifically. 

5. Failure to protect intellectual property

Failure to protect one’s intellectual property can lead to a business being vulnerable as a result. From not registering trademarks to copyrights or patents, this can leave your business feeling vulnerable to potential infringement. 

These legal mistakes are common, so if you want to avoid being at fault for one, remember these whenever you’re navigating anything with legal ramifications.