In the high stakes business world, non-compete agreements are an important tool for businesses to protect their client lists, goodwill, and pricing models. Without a strong non-compete agreement, losing a key employee can be very costly. The last thing your business wants is for a former employee to gain a competitive advantage against you by [...]
The Michigan Court of Appeals recently issued an opinion that will make employers think twice about resignation procedures for employees. In Robbins v. Sault Ste. Marie Tribe of Chippewa Indians (Click here for a PDF of the case), an employee had a written clause in her contract that she would receive two years’ salary if [...]
A tenant of real estate often wants the right to purchase the property if the landlord decides to sell. One common technique is to have the landlord grant the tenant a “right of first refusal.” The tenant is granted the first right to purchase the property on the same terms offered by a bona fide [...]
One of the main reasons to establish a corporation is to avoid personal liability for the corporation’s debts. However, the protection may not be available if there was some defect in the way the corporation was formed, or the corporation had not yet been formed when a contract is signed. In Duray Development, LLC v [...]
A mortgage has priority over other liens on the property from the date it is recorded with the Register of Deeds. The mortgage can also have priority for amounts advanced by the lender after the date of recording if the mortgage contains certain specific language making it a “future advance mortgage”. In Citizens State Bank [...]
Many contracts have default provisions. These provisions set forth what actions or inaction must occur for a party to default under the Agreement and for the non-defaulting party to be entitled to recover damages and/or terminate that particular Agreement. In some circumstances, and often in the context of a loan, parties may enter into multiple [...]
Contrary to popular belief, employers are not obligated to provide severance pay upon an employee’s termination of employment due to a layoff. If an employer does choose to provide severance pay, it should be accompanied by a severance agreement. The most important provisions in a severance agreement are those regarding payment, non-competition, and the release [...]
Sometimes it’s easier to agree to something verbally, rather than put the agreement in writing. This is not usually a good business practice, however, because many problems can arise from verbal agreements. These problems include disputes over the terms of the contract, but also disputes over whether the contract itself is enforceable. Some oral contracts [...]
In a previous article we had examined the fact that the Michigan Court of Appeals affirmed the common law principle that contract provisions that shorten the statutory period for bringing a cause of action are allowable. Recently, the Court applied similar reasoning in affirming the principle that a contract can even limit the amount of [...]
In all aspects of business and contracting, but especially after a lawsuit has been filed or threatened, one party may approach the other party with a comprehensive release agreement as part of a settlement of the dispute. A release agreement is a form of contract wherein the party who has allegedly committed the wrong requests [...]
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