Many business owners navigate their operations blindly when it comes to the legal aspects of their company. Some lose their way as myths abound the law, making it difficult for people to distinguish fact from fiction. For that reason, we’re here to dispel these legal myths so you can make informed decisions to improve the growth of your business and away from costly mistakes.
Myth #1: Business Entities can Protect Your Assets
While a business entity protects the owner’s personal assets such as cars, homes, and bank accounts, keep in mind that it is still vulnerable. Someone determined to pierce your business entity can always find loopholes to pursue it. To that end, be wary of business entities as it is not a fool-proof way of shielding your assets.
Myth #2: Patents and NDAs Will Always Keep Your Intellectual Property Safe
Any product or service created by your company should have patents and copyrights. This helps protect intangible property such as your business name, products, services, or any other creative projects. However, filing for patent disclosures doesn’t ultimately save you from large corporations who have more prominent means to steal your ideas.
With better capital, you may find yourself on the losing side as they have the resources to outlast you in protracted litigation. The situation worsens if the company that breaks your intellectual property is oceans away from your business, not to mention exponentially more expensive to deal with.
Myth #3: Solicitor-Client Communication is Absolutely Confidential
Lawyers need to keep their communication with their clients as confidential as possible, but there are some exceptions to the rule. For instance, a judge can freely take away the privilege under reasonable circumstances.
Myth #4: You are Liable for Damages or Injuries on Your Property
Arguably one of the biggest myths in the legal world, any damages, theft, or injuries on your property, doesn’t automatically make you liable for it. The chances of victims suing you are high, but keep in mind that you are not responsible for their negligence, clumsiness, and even criminal acts.
For that reason, you can seek the help of your lawyer and have an increased likelihood of winning the case. However, you should also consider that liability insurance doesn’t completely cover the damages done on your property.
Myth #5: Good Contracts are Full of Complicated Legalese
You don’t have to feel intimidated by any contracts as a good one should offer clear and understandable legalese. Signs of a poorly-done deal contains contradicting provisions, while simple ones are simple. It’s crucial to make it as unambiguous as possible to ensure that everyone is on the same page and can hold up their end of the bargain.
The Bottom Line
Undressing the myths and understanding the naked truth is crucial if you want to avoid bumping into legal issues. For that reason, this article aims to shed some light on the rules and regulations that apply to your industry when starting a business. After all, when it comes to the law, what you don’t know can hurt you.
If you are looking for expert legal advice, personalised service and a skilled legal team with a variety of legal specialties, GLG is your go to contact for commercial lawyers in Brisbane.