California Injury Attorney Blog

To be legally binding, a contract needs two essential components: 1) an agreement, and 2) consideration. Within the agreement and consideration lies an assortment of provisions that add to the legality of a contract. These include the offer, performance, terms, conditions, obligations, payment terms, liability, and default or breach of the contract.

The agreement component involves offers, counter-offers, and eventually what contract law calls the "meeting of the minds." An agreement can be either oral or written, depending upon the contract. If you hire a taxi to drive you to the airport, then it is an oral agreement that you will pay the driver a certain sum when you reach your destination. Contracts whose agreements must be in writing include real estate contracts and contracts that last more than a year. Every state has its own legal requirements and you should consult these requirements to find the specific regulations that pertain to your type of contract.

The agreement process involves one party offering terms and conditions that are either accepted or rejected by the other party. If the other party changes any term or condition of the offer, then the offer becomes a counter-offer. At this point, each party negotiates the terms and conditions of the offer until they have a meeting of the minds. This is when an agreement has been met and a contract can be drawn up.

Both parties must be competent enough to enter into the contractual agreement. They may not be minors (under 18 years of age), under the influence of drugs or alcohol, or of unsound mind. They also must have the legal power to enter into the agreement; this particularly pertains to people representing an outside interest, such as a company or third party. The main question becomes, "Do they have the legal power to carry out the terms of the agreement?"

For an agreement to be legal and binding, it must have some form of consideration. This means that all parties involved must receive consideration or something of value. Otherwise, it is considered a gift rather than a contract. The promise of a gift is not necessarily binding, depending upon the circumstances. Usually consideration involves one party giving something such as a product or service, and in exchange the second party gives some form of monetary compensation.

The consideration component of the contract brings up several other provisions that should be addressed. These provisions include:

•Obligations and Conditions of the Contract -- what each party needs to do to fulfill the terms of the contract
•Performance -- how well each party performs the terms of the contract
•Payment Terms -- a schedule that specifies when all payments are to be made
•Liabilities -- defines the liability of each party in terms of the contract
•Breach of Contract -- what will happen should either party fail to fulfill their end of the agreement
When compiling the agreement and consideration of a contract, the agreement must be clear as to what is specifically expected of each of the contracting parties. An ambiguity or confusion in any part of the contract can lead to problems when trying to enforce the provisions of the contract.

Although not legally required, each contract should contain several provisions known as "boilerplate" provisions. These include:

•Arbitration Clause -- makes allowances so that disputes are handled by an independent arbitrator
•Entire Agreement Clause -- states that what is written in the contract is what the agreements and conditions of the contact are, and no previous agreements or conditions are applicable
•Force Majeure Clause -- states that should something happens beyond the control of either party (such as a tornado destroying a house while it is still in escrow), then the contract is no longer valid.

Continue reading "What Are the Essential Elements That Make Up A Valid Contract?" »

A catastrophic injury can leave a person suffering from permanent disabilities for the rest of their life. Catastrophic injuries are any injuries that have serious, long-term effects on the victim. If compensation is not received for catastrophic injuries, the physical, emotional and financial strains can be devastating.

"Catastrophic injuries usually affect far more than just the victim," says Steven C. Peck a catastrophic injury lawyer in Los Angeles, California. "They can often put serious stress on the victim's family because they may need constant supervision or assistance for the rest of their lives, not to mention a lifetime of rehabilitation and medical bills."

Catastrophic injuries can be caused by any number of different circumstances, and the results of the catastrophic injury can last for weeks, months, or even years. Some of the most common catastrophic injuries include:

* Back Injuries

* Neck Injuries

* Brain Injuries

* Burns

* Organ Damage

* Paralysis

* Paraplegia

* Quadriplegia

When a victim suffers a catastrophic injury, the impact can be enormous. Not only can a catastrophic injury prevent a person from gaining any substantial income, it can prevent them from enjoying their life, and it can cause their family huge amounts of stress. Catastrophic injuries to the brain can even change a person's personality, make remembering things difficult, and prevent them from recognizing their most loved family members.

A catastrophic injury lawyer will help you recover compensation for the damages that you or your loved one has experienced, including:

* Lost Wages

* Loss of Enjoyment of Life

* Mental Anguish

* Pain

* Suffering

* Lost Future Wages

* Permanent Disability

* Medical Bills

Continue reading "What Are Catastrophic Injuries?" »

A partnership agreement is the document which governs how a partnership is managed and controlled (much like the bylaws of a corporation or the LLC operating agreement for a limited liability company). While you do not need to prepare a partnership agreement prior to setting up your partnership, it is highly advisable that you do so. says California Business Attorney Steven C. Peck.

First, it allows you to clearly define details about your partnership, which can help avoid trouble down the road. In addition, it will allow you to avoid any of the state's default rules about partnership operation that you may not like, so you can set your partnership up to be operated exactly as you want Los Angeles Business Lawyer Steven C. Peck suggests.

Partnership agreements do not have to be overly complicated, in terms of what goes in them. A partnership agreement should simply contain all of the major details about the partnership's ownership and management - what percentage of ownership each partner has, what percentage of control each partner has, what percentage of profits each partner is entitled to, if and/or when any meetings are to be held, etc. You should also include some of the boilerplate provisions that appear in many contracts, principally among these being what happens if there is a dispute or conflict between the partners.

Continue reading "What is a Partnership Agreement?" »

California is known as a "title theory state," which means that title to a property remains in trust until the loan is paid in full. Once a buyer fulfills his promise to pay the mortgage loan, the title transfers to his hands. When a homeowner is unable to meet his mortgage obligation, foreclosure begins. Foreclosure is the process in which the rights to a property are taken back from the homeowner and the property is sold to satisfy any unpaid mortgages and liens.

How Soon Do Foreclosure Proceedings Begin?
The early steps in foreclosure begin when your first payment is missed.

Can Only My Mortgage Lender Foreclose On My Property?
Your mortgage holder, other lien holders, or anyone who has a vested interest in your property due to money you have borrowed using the home as collateral can foreclose.

How Will I Know My Property Is Being Foreclosed On?
A Notice of Default will be recorded at the County Recorders Office in the county where your property is located and you will be notified by regular or certified mail.

What Is The Time line After The Notice of Default Is Filed?
In California, it is normally 90 days, plus 20 to 25 days until publication. This is time you should use to work with your lender to come up with a solution that halts the foreclosure process. The lender doesn't want to have your home on his books and you likely don't want to lose it, so it benefits everyone for you to talk to him directly to learn about options.

How Do I Stop The Foreclosure Sale?
The obvious way to stop a foreclosure is to bring your mortgage payments current, along with any fees you owe. If you're unable to do that, ask the lender to modify your payments, possibly adding the late payments on to the back of the loan. If your credit is strong, you may consider refinancing your home to a more manageable payment. Other options include selling your home and filing for bankruptcy.

How Would Bankruptcy Help Me?
In California, bankruptcy will stop the foreclosure proceedings, giving you time to work a plan out through the courts.

Continue reading "Some Foreclosure Questions In California?" »

A franchise is where a company obtains a license from another established business. This license allows the company to do business in association with the established company, using its business methods, trademarks and other resources indicates Los Angeles Business Attorney Steven C. Peck.

Typical examples of franchises include fast food restaurants and realtors offices. For example, while there may be multiple realtor offices across the county known as Century 21 realty, the individual offices are generally separately owned and operated, and simply have a franchise agreement with Century 21 (in other words, they are not all part of a chain, like Wal-Mart) says California Business Law Lawyer Steven C. Peck.

In addition, franchising can also include a situation where a company sells goods which come from the franchisor or offers services controlled by the franchisor, using the franchisor's trademark. The franchisor generally exercises some control over how the individual franchising business operates itself. Typical examples of this type of franchise include gas stations and car dealerships.

Continue reading "What Is a Franchise?" »

One of the largest advantages to setting up an LLC is that the process is less formal and rigid than for setting up corporation says California Business Attorney Steven C. Peck.

However, the owners do not have to give up the limited liability protection afforded to corporate owners, meaning LLC owners are similarly protected from being personally liable for most losses and debts of the business itself. LLCs also use the same type of pass-through taxation used by partnerships, which is an advantage for many smaller businesses (and if the corporate-like double taxation would be more beneficial, you can always elect to have your LLC taxed in that way instead).

LLCs also provide you more flexibility in terms of how the business is controlled and managed. There are not as many formalities as there are for corporations, and you have more options about how each LLC owner is involved (whether they are simply an investor or have management control). You also have more flexibility with financial aspects of the business - for example, while corporate laws provide strict rules and regulations on how corporate profits and losses are distributed, LLCs are generally freeer in determining how they want to make such distributions.

Continue reading "What Are The Advantages of Setting up an LLC (Limited Liability Company)?" »

Find the perfect location. You should research in what location of the city your business would be best- suited. Then calculate the overhead so you can see what you need to make per month. Different parts of the city will have different monthly lease costs. When obtaining your office /warehouse space, look into the city cost and then compare that to a smaller city.

Apply for an Employee Identification Number (EIN) number or a Doing-Business-As (DBA) name. After finding a building you will need to apply for a federal EIN number. This is a number for the Internal Revenue Service (IRS) to identify your business. They will also send to you all the new guidelines regarding your type of business. .

Register for a business license. Look on the Internet for your specific city or town. Each city has its own mandatory paperwork and definitions to define your business. Begin the process of registration y after securing your EIN/DBA name.

Set up a new bank account. You will need to have your EIN number or your DBA paperwork before obtaining a bank account. If you can afford an accountant, it's a good idea to have one. Lack of bookkeeping is one of the top reasons new businesses fail after opening a new bank account. As the owner of the business, you need to strictly maintain the books. If you're hesitant about your ability to manage your banking, an accountant will be an asset.

Find advertising space. A good business owner knows before they open how they will market their business. If you have written a business plan, you are well on your way. Starting a new business requires good advertising to bring in a steady flow of customers.

Stay current on your California Tax Laws. Make sure that you are aware of California tax obligations. Talk to your accountant or bookkeeper about keeping up with the laws.

Set up a web site. Today's customer always expects to find a business on line. You can hire a web developer or do it yourself. Strive to update the site to ensure a good search engine page ranking.

The most common method for getting out of a lease obligation is to sublease the space to another tenant. In order to sublease the space, however, your lease document must have a clause allowing for it. But beware, subleasing does not relieve the original tenant of obligation in the event that the subtenant defaults or otherwise violates the sublease terms. And landlords usually require the right to approve the subtenant based on reasonable terms says California ?Business Lawyer Steven C. Peck.

Another common method for relieving rental obligations is to buy out of the lease. This method requires the tenant to pay a negotiated lump sum to the landlord. This sum is calculated by discounting the future value of lease payments and then recapturing the unamortized portion of commissions paid as well as the value of tenant improvements. The buyout price is most often significantly less than the total of the remaining payments on the lease. Buyouts protect tenants by ending liability for the lease. For landlords, buyouts cover the sometimes significant vacancy costs during the time needed to find a new tenant.

Continue reading "How To Get Out of A Business Lease Obligation?" »

If you've never leased a vehicle before, the world of leasing may seem confusing. Leasing is a bit like renting a car long term, except that when the lease is up, you have a couple of options besides just returning the car to the dealership where you leased it.

Leasing a company car is a great option for cash-strapped businesses that don't have the money upfront to buy a vehicle. Leases are typically calculated on the amount by which the vehicle's value is expected to decrease during the lease period, so down payments and monthly lease payments are lower than you would pay if you bought a company car. A car that holds its resale value better will cost less to lease, as it loses less value over the lease term.

Be sure to compare any lease you're offered with others on the market before you sign a contract. Typically, a lease commits you to making payments on the car for three years, but other terms may be available says California Business Lawyer Steven C. Peck.

The following are other key factors to look at in a lease agreement:

•Capitalized cost: This is the lease price. You want to negotiate down the "cap cost" so it's significantly less than the manufacturer's retail price for the vehicle.
•Cap cost reductions: Be on the lookout for anything that might reduce your cap cost, such as factory rebates, dealer incentives, or the value of any trade-in vehicle you're offering the dealer.
•The money factor: This is lease-speak for the interest rate. The money factor will be stated as a decimal, which you multiply by 2,400 to get the interest rate. So a money factor of .00032 means an annual interest rate of 7.68 percent. The money factor may be influenced by a range of variables, including your lease length and your credit rating. Often the best money factors can be found in manufacturer-supported lease programs.
•Residual value: This is the car's value at the end of the lease. Unlike in car buying, where you won't know the car's worth three years from now until that day dawns, in leasing you agree upon a preset figure for what the car's value will be when the lease ends. You want a residual value set as low as possible because if the actual resale value at the end of the lease turns out to be more, you could buy the vehicle at the preset residual price and resell it for a profit or apply that equity to another lease or vehicle purchase. This is known as having positive equity at the end of the lease. If your vehicle turns out to be worth less on the open market than the residual value set in your lease, you're better off simply turning the car in and walking away.
Most dealerships offer lease agreements; but don't limit yourself to the dealer's offer. You can also lease a vehicle through an independent leasing broker. You can find an independent lease broker through the National Vehicle Leasing Association Web site.

Continue reading "Leasing Business Vehicles" »

A professional corporation is a special type of corporation which some state laws allow for that works like a limited liability partnership - that is, it's a corporation owned and operated by licensed professionals, such as attorneys, accountants or doctors. With a professional corporation, each owner/shareholder has limited liability with regard to any acts undertaken by other owners or the corporation itself. This is no different from the limited liability that applies to all other corporations. However, where there is a difference is that an owner/shareholder remains personally liable for any of their own misconduct. For example, if one owner commits malpractice and the business subject to some judgment as a result of this, that owner is personally liable to the extent the corporation cannot cover the judgment.

Continue reading "What Is A Professional Corporation and How Does It Work?" »

The greatest advantage to running a business as a corporation is that, as with an LLC, the owners are protected from being personally liable for any losses, debts or obligations of the business itself. So, for example, if your corporation were sued and lost the case, the successful plaintiff would not be able to go after your personal belongings - the most you could lose is whatever you had actually invested in the company. In addition, because a corporation is an entirely separate legal entity from its owners, a corporation generally has an unlimited life beyond the life of its owners, lasting for decades or even centuries.

The other major advantage of a corporation is its ability to sell stocks, allowing investors to become partial owners of the company. It is therefore easier to raise capital with a corporation than with other types of business forms, because you can take your company public and allow anyone to become an investor/shareholder.

Continue reading "The Advantage of Corporate or LLC Formation Is the Protection From Personal Liability" »

Where you are going to prepare a partnership agreement, you are free to set it up however you want, because they are fairly flexible. Essentially, you just want to include all of the relevant things about how your business is owned, controlled and operated. The basic things that should go into such a partnership agreement for a general partnership include:

1. Identification of the partnership name and any trade names the business will be using.

2. How long the partnership will last - this can be a determinate amount of time, like 10 years, or simply a statement that the partnership will continue indefinitely, until dissolved.

3. A statement of the partnership's purpose - this should be kept as broad as possible so that you have flexibility down the road, if you want to expand your partnership's business without having to worry about amending the agreement.

4. The contributions/investments (whether it's cash, services, or property) each of the partners will be making to the partnership.

5. How profits and losses are to be split and shared among the partners.

6. When profits can be drawn from the partnership and distributed to the partners - this can be monthly, yearly, any time the partners agree to, etc.

7. A detailed statement of any salaries being paid to any of the partners.

8. The authority the individual partners have to take actions which can bind the partnership and the other partners.

9. How the partnership is to be managed, whether any of the partners will hold specific/particular management responsibilities, how voting on management issues is to be handled, etc.

10. Whether partners are allowed to be involved in any business activities outside of the partnership and, if so, to what extent.

11. How partners can leave the partnership, whether they must offer the remaining partners an opportunity to buy them out, etc.

12. How partners can be expelled from the partnership by the other partners.

13. How new partners can be brought into the partnership.

14. How disputes between the partners are to be handled (i.e., mediation, arbitration, litigation in a particular state, etc.).

Continue reading "What Basic items Should Be Contained In a Partnership Agreement?" »