Blog Posts in September, 2015

How "Apparent Authority" Can Bind You to a Contract

It is well understood that an agent may bind a principal to a contract. For example, if you own a business and authorize one of your employees to sign a contract, the company is liable for any obligations under the contract. If you then fail to perform, the other party may sue you for breach of contract . But what happens if you did not authorize the employee to sign the contract? Can you still be ...

What Are a Buyer's Obligations Under an Asset Purchase Agreement?

When acquiring a business through an asset purchase agreement, it is important to understand what specific obligations the buyer takes on from the seller. A well-drafted purchase agreement should identify the exact assets and liabilities transferred from the buyer to the seller. Any ambiguity in the agreement may lead to costly litigation even after the deal is completed. Acquiring Assets Does Not ...

What Happens if I Don't Get a Compensation Agreement in Writing?

When it comes to any type of business contract, it is always best to get it in writing. New York, like many states, has a Statute of Frauds , which specifies when agreements must be in writing to be enforceable in court. For example, a “contract to pay compensation for services rendered” in negotiating the sale of a business or any related assets must be in writing. This means if you agree to sell ...