As a business founder, you juggle between a million things as you get your business off the ground. Some of it revolves around contracting, registration, permits, and licenses that all come with legal jargon. It can be tough to decipher the terms and conditions inserted in legal documents. As such, we have compiled a list of phrases that can help you navigate the complex legal environment your business falls in.
Firstly, the legal terms that apply to your business depend on the type of business you engage in. For example, the business owner of dentistry will need to learn healthcare-related terms used in documents. A transportation company will interact with different terms utilized in the logistics business. However, there are standard terms that every business owner should know.
Liability
Whereas contracts provide comfort and safety in work, a business owner must be wary about the clauses on liability contained in most contracts. Liability results when you cannot complete your obligations as required by the second party and as had been mutually agreed. If parties to an agreement cannot meet their commitments and, as a result, and loss occurs, the aggrieved party has a right to remedy from a court of law.
Negligence
Negligence refers to acts committed by people that affect other parties causing physical or emotional hurt, damage, financial loss, or otherwise. The actions committed infringe on the rights of others when carelessly and negligently done. Negligence can result when a party acts in a manner that an ordinary person would not have, resulting in hurting another person’s being or property.
Force Majeure
If unforeseen disasters, emergencies, and natural occurrences result in one party failing to fulfill their obligation, such an aggrieved party can find relief from a court of law. Circumstances in question do not have to be natural occurrences but rather provable grounds outside the business’s control.
Articles of Incorporation
To establish a corporation in the US or Canada, one must have the articles of association documents filed with the registrar of companies. These documents include crucial information about a business, such as its corporate headquarters, structure, and type of business operations.
The above terminology will guide you to navigate the complex processes necessary to make you legally compliant. However, it would be best to ask a lawyer for more guidance on all legal matters to avoid misunderstanding on other terms not covered.