Common Legal Mistakes Small Businesses Make and How to Avoid Them – Expert

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Lawboxng CEO Olusola Adegoke has highlighted some common legal mistakes people make when starting a small and medium-sized business in the country.

Some of these mistakes include unnecessarily involving family in business and not seeking legal advice, among others.

Adegoke recently said this while talking to Naijaonpoint during our business half hour Program.

Common mistakes: Commenting on the main mistakes people make when tying the legal end of a contract, he explained that some people often assume that the other person understands their vision or knows where they are going.

He added that people also make the mistake of involving family and friends in business, which can get very emotional when things are not going well, leading to problems in the family.

  • “So I always advise finding a partner that you’re not related to by blood, then you go into the business and research who they are, what they do, the kind of experience they have, the financial situation and everything.” she added.

Adegoke added that signing contracts without seeking legal advice considering that certain clauses could be involved in business is also a big problem. She said:

  • “There is a particular clause that people take for granted and that is the exit clause. you realize that when a couple wants to leave, someone else disagrees with some of their terms and it becomes a problem.
  • “If the business doesn’t have an exit clause, you see them going to court, so clauses are very important in business to address issues of; when one of the parties leaves, what happens? What’s in your exit plan? Are you giving a percentage of the business to this person? Does this person leaving with you know of a particular compensation?

Tips/recommendations: Adegoke said that in addition to an exit clause, business partners must also indicate a Force Majeure clause in case of unforeseen circumstances or anything that may prevent the party from fulfilling the terms of the contract obligations.

She advised not to attend meetings alone, noting that it’s also a big mistake that every business-minded person should avoid.

  • “Try not to attend meetings alone. If you can’t afford to go to a lawyer, go to a smart person or someone in your circle. when you go to meetings alone there is always the possibility that you could be manipulated into thinking that something works well but when you have someone with you the other person sees things differently because this person is neutral so I always tell them to people who go to the meetings in the company of their lawyer or go alone as a neutral person”, She said.

…Common Legal Mistakes Small Businesses Make And How To Avoid Them – Expert Read More About… Naijaonpoint.

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