Should I Start an LLC or a Corporation?

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Learn More from Experienced Business Lawyers in Philadelphia at Sidkoff, Pincus & Green.

Whether you provide consumers with goods, or clients with services, liability is an ever-present issue in businesses of all sizes. You might start a business, but have not made it a separate legal entity. If so, you could be liable for damages arising from any harm caused by the goods or services that you provide.

There are two effective ways to handle potential liability from your business activities. One is to create a limited liability corporation (LLC), and the other is to create a corporation. An LLC and a corporation have their own advantages. The following could help you to choose which would be best for your business ambitions.

Pros for Creating a Business Entity

An LLC and a corporation are similar in that they create legal entities. Those legal entities enable you to protect your personal assets by making them wholly separate from your business activities.

A medical doctor or an attorney who enters into private practice are good examples of people who provide services that could raise liability issues. Creating an LLC or a corporation for a private practice helps to limit liability to only those entities.

You could appoint yourself as the president and CEO of your LLC or corporation, paying yourself a regular salary and annual bonuses. Once that money is in your account, it is separated from your business activities.

Sole Proprietorship Makes You Vulnerable to Business Liability

Without an LLC or a corporation, you are operating what is called a “sole proprietorship,” which is one way to say that you work for yourself while providing goods or services to others.

A sole proprietorship does not protect your personal assets against liability that might arise from business practices. You could lose your life savings, home, and other assets if a customer or a client were to sue you and win a large settlement in court.

If you have an LLC or a corporate structure, the liability would not extend to your personal assets: instead, you could obtain business insurance that helps to cover the costs of liability if any issues were to arise.

Advantages of an LLC

An LLC is a simple and affordable way to create a legal business entity. An LLC might have more than one owner, but the ownership structure is small and reduces the amount of paperwork that you would have to file each year.

An LLC enables greater flexibility for management. You can change the management structure without enduring complicated legal filings or extensive paperwork.

An LLC also has a tax advantage over corporations. That is because the federal government does not tax the profits of LLCs like it does corporations. The profits from LLC entities go straight to the owners. And those owners pay taxes on their respective incomes.

An LLC does not have to endure complicated tax filings like a corporation does. It also does not require the kind of specialized accounting assistance and legal help that a corporation often requires to file and pay its annual taxes.

Disadvantages of an LLC

An LLC needs to turn a profit for its owners to make money. If a bad year results in no profits, then there is no pay for the owners.

An LLC requires its owners to have other sources of income. Or the owners need to be very frugal with the profits that they obtain during profitable years.

A strong business model and quality goods or services can help to overcome the potential for business losses. But you never know with something unexpected might occur – like a global pandemic that triggers statewide lockdowns.

An LLC also leaves its owners vulnerable to criminal allegations arising from potentially unlawful business dealings. Just as the profits flow straight to the owners, so does accountability for any criminal acts that might occur.

How to Create a Pennsylvania LLC?

It is relatively simple and affordable to create an LLC in Pennsylvania. You just need to file a Certificate of Organization and a docketing statement with the Bureau of Corporations and Charitable Organizations.

You could complete the paperwork yourself and pay the requisite fees to make your LLC a reality. But it can help to have experienced business lawyers in Philadelphia assist with the filing and its subtle legal matters.

Advantages of a Corporation

A corporation can control excess profits and use them to reinvest in the goods or services provided to customers or clients. The corporation also can use the excess profits to reward its shareholders. If a loss occurs, that also could be passed on to shareholders, though the president, CEO, and other executives and managers still can be paid salaries during years when losses occur. Forming a corporation helps to ensure some level of income even during bad years.

A corporation also provides your business entity the opportunity to eventually go public. You could list shares on a stock exchange and raise capital to fund your business ventures.

Disadvantages of a Corporation

You already know that a corporation has a more complicated creation process than an LLC, with the added irritation of dealing with annual corporate taxes. It is beneficial in many ways to enlist the help of experienced business attorneys and accountants.

Even if you are just a shareholder in a corporation, you could suffer financial losses during a bad year: if the corporation goes bankrupt, the shares become worthless. That partly is why the federal government has bailed out corporations in the past to help prevent them from filing for bankruptcy.

How to Create a Pennsylvania Corporation?

It takes more legwork and effort to incorporate in Pennsylvania and other states. You need to choose a corporate name that is unique, and readily identifiable when compared to other corporations.

The corporation must have an address and a registered agent. The registered agent could be an individual, such as a business attorney, who has a legal address in Pennsylvania. The agent also could be a business entity that can do business in Pennsylvania.

You will need to create corporate bylaws and appoint directors. After doing that, you can hold your first board meeting to officially name directors and adopt the bylaws.

You can file the articles of incorporation at the Pennsylvania Department of State. Afterward, you need to issue shares to your shareholders. Then you are a true corporation that might go public in the future.

Learn More from Experienced Business Lawyers in Philadelphia at Sidkoff, Pincus & Green

The experienced Philadelphia business lawyers at Sidkoff, Pincus & Green can help you choose and organize an LLC or a corporation in Pennsylvania. You can call 215-574-0600 or contact us online to schedule an initial consultation at our Philadelphia law office. We represent clients throughout Pennsylvania and New Jersey.

Does Age Discrimination Affect Who is Hired?

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The Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Help Workers Facing Age Discrimination.

Age discrimination, also known as ageism, is discrimination against a person or a group of people based solely on their age. Ageism can happen to anyone, as aging is one thing that we call cannot control. Unfortunately, it happens quite frequently in the workplace, whether it is towards a long-time veteran at a job or someone fresh out of college trying to get into a particular field. People are subjected to age discrimination every day, even though it has been outlawed in the country for decades.

The Age Discrimination in Employment Act was passed in 1967, which protected applicants over 40 years old from ageism. Additionally, the Age Discrimination Act of 1975 protected those of all ages from discrimination. Despite this, age discrimination has been so prominent in the workplace that most people do not even know that it is illegal.

Recent studies by the American Association of Retired Persons (AARP) found discriminatory practices in the workplace for older workers during:

  • Hiring process: Ageism happens when an older applicant is overlooked for someone younger based solely on age.
  • At the workplace: Age discrimination happens when an older worker does not receive promotions or rewards or is harassed because of their age.
  • Termination: Forcing an older worker out because of their age or letting go a worker to make space for a younger worker.

Age discrimination has such a negative impact on all businesses that it is puzzling that there are so many cases of it. Many cases of age discrimination go unreported. Older workers face many stereotypes even to this day, despite their experience and productivity. Here are some myths that the older generation of workers face:

  • Employers who do not hire older workers lose out on the experience and intellectual property they have earned over the years.
  • Older workers are more confident and knowledgeable than younger workers but are thought of as over-the-hill or unable to keep up.
  • Older workers can help their younger counterparts learn the job instead of supervisors or bosses having to micromanage and waste productivity.
  • Age discrimination causes disloyalty and lowers employee morale. Many people like to work for companies that welcome all employees of all ages, not companies that push older workers out to bring in cheaper and younger workers.
  • Age discrimination causes an increase in employee turnover, which decreases any hope for success.
  • There is a myth that older workers are unable to learn newer technologies, and this affects online job searches. They may be disqualified from job applications as algorithms filter out applicants based on their age.

Recent research has shown that age discrimination also causes a decline in mental health, particularly amongst women. When an older worker cannot get hired or is overlooked for a promotion, or is let go because of their age, then that has an adverse effect on the individual’s finances. Financial trouble leads to depression and similar mental health issues.

Age discrimination does not just affect older workers, as younger workers face prejudices as well. Younger workers are not hired because of the stereotypes of not having enough experience or are too immature for the job. However, many studies have shown that older workers are hired far less than their younger counterparts.

The Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Help Workers Facing Age Discrimination

Age discrimination is illegal. If you are facing age discrimination in the workplace, you may be entitled to compensation. Contact the Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. immediately. Our knowledgeable team has years of experience and can help you with your case right away. Call us at 215-574-0600 or fill out our online form for an initial consultation. With offices located in Philadelphia, we proudly serve all communities of South Jersey, Pennsylvania, and New Jersey.

Should I Have My Contract Drafted by a Lawyer?

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contract drafted

When drafting a contract, there are specific agreement concepts and money at stake, and hiring a lawyer for your contract needs can be one of the wisest decisions you will ever make. There are many benefits to having an experienced lawyer help you avoid the common pitfalls of self-written form contracts.

There are several kinds of contracts required for businesses, including those related to employment, services, contractors and leases. In particular, drafting an employment contract or employment agreement can be complex. There are various terms that are important to understand and include. Employment contracts involve certain provisions and specific terms that are unique from the language found in confidentiality agreements. An experienced lawyer will not only identify potential liability issues, but can suggest wording that will protect your legal interests and rights.

Lawyers have specialized knowledge and insight when it comes to using certain language and clauses in contract matters. Contracts must use exact language and meet numerous technical legal requirements in order for it to provide full protection under the law. An experienced lawyer will ensure that you benefit as from the specific terms of the contract. You can also rely on a lawyer to identify and correct any loopholes that would make you vulnerable to any future disagreements.

Additionally, a lawyer will be able to give you an unbiased, outside perspective on your business dealings during negotiations and the contract review period. The parties to a contract often go through many drafts and negotiation sessions before the official contract is signed. Your lawyer will not only draft the contract, but make sure you understand exactly what you are signing and what it will mean for you and your business going forward. 

It is also important to keep in mind that the employment and industry regulations that you presently understand may not be the most up-to-date laws. A lawyer’s job is to make sure that all contracts your business requires follow the current laws so that you are not disadvantaged or affected by incorrect information. A lawyer will be sure to draft your contract in a way that abides to future rule and regulation changes, which reduces your risk of having to update your contract frequently. The goal of a properly drafted contract is to help to prevent legal disputes from arising in the future. It also serves as evidence of the parties’ original intentions and obligations. If any issues with your contract should arise, you will be able to call upon your lawyer for future advice or questions with regard to that contract and any possible disagreements or breach of contract. 

You want to make sure that your final, official and signed contract is enforceable. Hiring a lawyer to draft your contract will provide you with the expertise of someone who knows how the courts will interpret and enforce the various terms of any kind of contract.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Help Write Employment Contracts

If you need help drafting your employment contract, the experienced Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. are available to help. If you are a business owner and need help with a contract or other legal matters, contact us online or call us at 215-574-0600 today. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

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Are LGBTQ+ Workers’ Rights Protected?

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The Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Advocate for Workers Facing Discrimination.

Thanks to a 2020 U.S. Supreme Court ruling, it is illegal for a Pennsylvania employer to fire someone for being gay or transgender. The Supreme Court ruled that civil rights laws governing employment discrimination include protections for workers in the LGBTQ+ community. This ruling had a significant impact in Pennsylvania, where workers previously did not have such protection.

The Supreme Court interpreted Title VII of the 1964 Civil Rights Act to extend employment protections to LGBTQ+ people. This law has always prohibited discrimination based on race, religion, national origin, and sex. The court then determined that the definition of “sex” includes gender identity and sexual orientation.

LGBTQ+ Pennsylvanians have been trying for decades to be protected against employment discrimination. More than 50 municipalities, including Philadelphia and Pittsburgh, have had ordinances that protect LGBTQ+ people, but the result was a mishmash of laws, where a gay or transgender person could be fired in one city but not in another.

In addition, state employees are protected from discrimination based on sexual orientation because of an executive order by Gov. Milton J. Shapp in 1975. Another executive order in 2003 by Gov. Ed Rendell included protections for transgender state employees as well.

Pennsylvania’s nondiscrimination law, the Human Relations Act, does not specifically protect employees based on gender identity or sexual orientation. Like the federal law, it simply says that a person cannot be discriminated against based on sex.

Pennsylvania’s hodgepodge of LGBTQ protection laws no longer exists. With the Supreme Court’s most recent ruling, firing someone based on gender identity or sexual orientation violates civil rights law anywhere in Pennsylvania and across the nation.

With the Supreme Court’s ruling, companies, especially those who operate in multiple states such as Pennsylvania and New Jersey, must amend their policies to uniformly include protections for gender identity and sexual orientation. New Jersey’s nondiscrimination laws have included sexual orientation as a protected class since 1991, and gender identity since 2006.

What Should I Do if I Am Discriminated Against in Pennsylvania?

Employment discrimination occurs when a current or former employer takes an adverse action against you based on race, color, national origin, gender, religion, age (if over 40), disability, sexual orientation, or gender identity.

An adverse employment action could be:

  • Termination.
  • Demotion.
  • Not getting promoted.
  • Pay or benefit reduction.
  • Transfer to a new department or region.
  • Decrease in responsibilities.
  • Adverse performance reviews.

A Pennsylvania employee who believes their gender identity or sexual orientation is the reason for an adverse employment action must follow these steps to file a complaint:

Step One

You must first file a complaint of discrimination with either the Equal Employment Opportunity Commission (EEOC) or the Pennsylvania Human Relations Commission (PHRC) within 180 days of the adverse employment action. If the agency you file with believes the other agency would better handle your complaint, it will cross-file your complaint with the other agency.

Step Two

The agency that receives your complaint will assign an investigator to the claim. You and the employer will complete questionnaires. The investigator may follow up with phone calls or meetings for more information. The agency can mediate between you and your employer. If it cannot facilitate an agreement, it will decide whether to file a lawsuit in court against the employer on your behalf.

Step Three

If the agency decides to file a legal claim on your behalf, it will file the lawsuit and work with you throughout the legal proceedings.

If the agency decides not to file a lawsuit against the employer on your behalf, the agency will send you a “right-to-sue” letter. This letter gives you the authority to file a federal or state court claim. If this letter is from the PHRC, you must file a claim in court within two years. If it is from the EEOC, you have 90 days from the date of the letter to file a claim in Court.

The Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Advocate for Workers Facing Discrimination

Any employee who feels they may have been discriminated against should contact the Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. We can review the facts of your case and counsel you on the best next steps. For an initial consultation about your case, contact us online or call us at 215-574-0600. Located in Philadelphia, we serve clients throughout Pennsylvania, South Jersey, and New Jersey.

Am I Protected From Retaliation by My Employer?

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Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Advocate for Employees Who Have Experienced Workplace Retaliation.

Every employee has the right to a workplace that is free from retaliation. Retaliation occurs when an employer acts negatively against an employee who has engaged in a legally-protected activity, including the following (not an exhaustive list):

  • Filing a discrimination claim, whether related to sexual, racial, religious or other discrimination.
  • Submitting an internal complaint of discrimination, including an informal and/or verbal complaint.
  • Questioning whether certain decisions or conduct of the employer are unlawful.
  • Discussing the employer’s practices with other employees.
  • Supporting a colleague’s discrimination or retaliation claim or internal complaint.
  • Requesting medical or maternity leave or a disability accommodation
  • Acting as a whistleblower.

What Is Employer Retaliation?

An employer actions can be considered retaliatory if they are motivated by the employee’s legally-protected actions. Examples of unlawful employer retaliation include:

  • Suspending, terminating, or demoting the employee.
  • Reducing an employee’s salary or benefits/eliminating benefits.
  • Refusing to promote the employee.
  • Issuing a negative performance review that is not accurate.
  • Disciplinary actions, such as probation or warnings.
  • Transferring the employee to a different department or area.
  • Harassing the employee.
  • Creating an uncomfortable work environment.
  • Starting rumors or gossip about the employee.
  • Writing up the employee for insubordination or other claims.

Protection Against Workplace Retaliation

Many different laws, federal and state, protect employees against retaliation. Workers who experience retaliation will go through their state’s Equal Employment Opportunity Commission (EEOC) for claims pursuant to the following.

Title VII of the Civil Rights Act of 1964

Protects employees from discrimination based on race, color, national origin, sex, and religion.

Fair Labor Standards Act

Makes it unlawful to discharge or discriminate against any employee because of filing a complaint or being willing to testify on a complaint.

Occupational Safety and Health Act

Protects employees who make workplace safety and health complaints.

Americans with Disabilities Act

Protects workers with disabilities in the workplace against discrimination or retaliation.

National Labor Relations Act (NLRA)

Gives rights to workers organizing, trying to form, join, or assist labor organizations to bargain as a group, and to engage in activities together with other workers. The anti-retaliation protection of the NLRA gives employees broad protection regardless of whether there is a union in the workplace.

Age Discrimination in Employment Act (ADEA)

Protects workers against age discrimination in the workplace.

On a state level, the Pennsylvania Human Relations Commission (PHRC) handles retaliation claims pursuant to:

  • Pennsylvania Human Relations Act (PHRA): The PHRA is a law that covers employment discrimination against workers by their employers for certain illegal reasons. The state enacted the law because workers who are not given equal employment opportunities may not reach their fullest potentials or enjoy the standards of living that they should. When people who have protected statuses suffer employment discrimination and are not given equal opportunities, they may then be forced to access public welfare.

Local laws can even protect workers. For example, Philadelphia’s Fair Practices Ordinance (PFPO) protects employees from discrimination and harassment based on their sex, sexual orientation, and gender identity.

What Can I Gain From a Retaliation Legal Claim?

An employee who has experienced employer retaliation should contact an employment lawyer. They may be entitled to recover compensation for their losses, including:

  • Lost wages and benefits due to being out of work (both past and future).
  • Curtailed career advancement opportunities.
  • Emotional trauma, humiliation, embarrassment, pain and suffering.
  • Reinstatement of lost position or benefits.
  • Attorneys’ fees and costs.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Advocate for Employees Who Have Experienced Workplace Retaliation

Retaliation against employees for whistleblowing or other reasons is illegal. If you feel your rights have been violated, contact our Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. We help employees get fair and just compensation under the law. For an initial consultation, contact us online or call us at 215-574-0600. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

 

 

 

Can I Get Out of a Business Contract?

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Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help You With a Business Contract.

A business contract between parties that is written and signed is a legally enforceable document. Signees generally cannot just leave the arrangement or void the contract at will.

In business, situations can change, and unforeseen circumstances can render one or both parties unable to honor their initial contractual agreements. Unfortunately, there are situations where one party purposely makes it difficult for the other to honor the contract.

A party can sometimes legally void their business agreement. Most of the time, breaching a contract comes with stiff financial penalties, legal costs, and possibly even litigation.

That is why it is important to have a business lawyer review a contract before it is signed. They may recommend including an escape clause in the agreement. This type of clause allows a party to terminate an agreement under certain predefined conditions lawfully.

If your contract did not have a termination clause, you might be able to still get out of the contract. There are some circumstances under which signees can void their agreement. It will still require legal action and an experienced lawyer.

Legally permissible reasons to void a business contract include the following.

Breach of Contract

If two or more parties sign a business contract and one signee unlawfully breaches the agreement, the other parties may not be required to fulfill their contractual obligations. The alleged breach must be proved in court. In a legal sense, a breach occurs when a party acts contrary to contract terms, refuses to maintain its contractual obligations, or prevents other parties from fulfilling their responsibilities.

Incapacity or Death

Contracts are typically nullified if a signee becomes incapacitated. This stipulation should be written into the contract terms. Generally, if a signee is deemed mentally incapable of maintaining the agreement, they are excused from the legal consequences of premature contract termination. In addition, deceased individuals are not held accountable to contract terms.

Fraud or Misrepresentation

If the contract is found to have been based on fraudulent or misrepresented information, the party experiencing the fraud or misrepresentation will have to prove it in court to void the contract. This process can be time-consuming and costly.

Impossible to Fulfill

If fulfilling your contractual obligation is deemed impossible, the contract can be lawfully terminated. However, the circumstances for voiding a contract for “impossibility to perform” are rare. Death and incapacity are legitimate reasons for making a contract impossible to perform. Traumatic and unexpected events, such as car accidents or natural disasters, may also be found legitimate reasons for making a business contract impossible to fulfill.

As stated previously, the best way to get out of a business contract is to have a termination clause built into the agreement, with predefined conditions that are reasonable and realistic. If that is not the case, a calm sit-down discussion involving all parties, led by an experienced lawyer, can result in negotiations and solutions fair to both parties.

Sometimes, it could even be as simple as asking the other party to allow you to void the contract. Smart business owners know that goodwill between business partners is worth more than going to court for a breach of contract. It may be possible to get out of your business contract for a fee or possibly for free. Let your lawyer lead the way.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help You With a Business Contract

Our Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. help businesses function smoothly and effectively under the law. If you are a business owner and need help with a contract or other legal matters, contact us online or call us at 215-574-0600 today. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

What Qualifies as a Business Tort?

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Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help You With Business Tort Litigation.

Whenever a conflict arises that causes harm to a business, a business tort could exist. Many business conflicts could endanger your business. The harm could be financial and threaten to close your business. The harm might even be the theft of trade secrets.

A business tort always involves the economic effects of wrongful acts that impact one or more businesses or other legal entities. Many begin with contract disputes that two or more parties cannot resolve. Then, lawsuits get filed in federal or state civil courts and sometimes both.

The plaintiff in a business tort must cite at least one cause of action for the lawsuit to proceed. A cause of action is comprised of legal facts that justify the lawsuit. Most business torts involve one or more of the following causes of action:

  • Tortious interference.
  • Injurious falsehood.
  • Restraint of trade.
  • Unfair competition.
  • Fraudulent misrepresentation.

Other causes of action also exist, and most business torts involve a combination. The plaintiff usually seeks a judgment for cash, property, or affirmation of a legal right.

Tortious Interference Affects Prior Business Relationships

Tortious interference happens when an offending party interferes with a business’ contractual relationships with others. The offending party might make it impossible for your business to complete a contractual obligation. When your business cannot perform its obligations, tortious interference might be a valid cause of action in a lawsuit.

Injurious Falsehood Explained

You likely understand the general concept of defamation. If another party spreads a malicious lie that damages your business’ brand reputation, an injurious falsehood occurs. Malice must be shown and refers to intentionally spreading a known falsehood with the intent to cause damage to your business’ brand reputation.

How Restraint of Trade Could Occur?

When an offending party does something that limits your amount of trade, sales, or delivery of goods or services, a restraint of trade happens. Whenever your business cannot continue normal operations due to the actions of other parties, a restraint of trade might be claimed as a cause of action.

Many Kinds of Unfair Competition

Unfair competition has potentially widely varying actions that could result in the cause of action triggering a civil suit. Stealing your trade secrets or using your intellectual property to siphon away some of your market shares are examples of unfair competition. The unfair competition gives the offending party greater leverage to generate profit at your expense.

Fraudulent Misrepresentation Could Void Contracts

When one party intentionally lies in order to secure a business agreement, that is a form of fraudulent misrepresentation. The misrepresentation is done with the intent to deceive a business or an individual. It might involve contractual negotiations or other business dealings and could occur in many ways, including the omission of information.

Punitive Damages Might Be Sought

When a malicious act creates one or more legitimate causes of action that you could prove in court, the defendant might be subject to punitive damages. You would have to request punitive damages in a court filing or amend an existing case to request them. However, it is important to note that punitive damages are rare.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help You With Business Tort Litigation

Our Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. can help you explore your legal options when you must resolve a business dispute. Call us at 215-574-0600 or contact us online to schedule an initial consultation. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

What Should I Do if I Find an Error in My Business Contract?

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Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help You if You Have an Issue With Your Business Contract.

Most business contracts are complex, containing dozens of sections, sub-sections, and countless provisions detailing the requirements by both parties. Miscommunications could happen and something could be put in writing that should not have been. Also, there could be simple typos that happen when a contract is long. It is possible that a simple typo could significantly change the meaning or terms of a contract. If the typo is not caught during a review of the final draft, the parties could be in a tough spot since both parties signed the document.

There are three main categories of mistakes that can happen in business contracts.

Unilateral Mistakes

This is where one side of the contract makes the mistake or misunderstands a term or provision within the contract. This is the most common mistake. There are a few ways a contract can be rescinded if a unilateral mistake has been made:

  • A drafting or clerical mistake that did not lead to gross negligence.
  • If the error was so serious and irrational to be outrageous.
  • If one party to the contract relied on a material fact that the other party knew was a mistake but failed to inform the other party.

The best way to make sure unilateral mistakes are not made is to hire an experienced lawyer who focuses their practice on drafting and negotiating business contracts.

Mutual Mistake

A mutual mistake is when both parties misunderstand a term or provision in the contract. Since both sides have made the mistake, the contract can usually be voided. However, there must be a material fact for a mutual mistake to be void.

Common Mistake

A common mistake occurs if both parties mistakenly believe or misunderstand similar facts. The issue at the heart of the mistake has to be a fundamental aspect of the contract.

How to Prevent Business Contract Mistakes?

You want to make sure you have a lawyer on your side. Make sure your lawyer understands the goals of the contract that is being agreed upon, as well as the minor issues. A good line of communication with your lawyer is extremely important so that there are no misunderstandings and that everyone is on the same page.

Review every line of the contract with your lawyer. If there are any questions, make sure to go over the language in detail to make sure you completely understand the purpose of each sentence.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help You if You Have an Issue With Your Business Contract

If you need to have a business contract negotiated and drafted, it is important that you consult with a lawyer. Our Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. can help you explore your options. Call us at 215-574-0600 or contact us online to schedule an initial consultation. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

Can Doctors Negotiate Their Contracts?

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Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Help Doctors Negotiate Their Contracts.

Until you sign a contract, anything is negotiable. It takes a lot of hard work and education to become a doctor, and it is very important that a contract reflects that hard work and advanced education that was needed to become a licensed medical professional.

Verbal agreements can help prevent some conflicts, but they have almost no legal weight. However, a written contract clearly outlines what is expected of both parties. If you are weighing the merits of a contract, the following tips could help you to decide how to proceed.

Commonly Negotiated Conditions in Contracts

Pay, work hours, and benefits are common elements of any work-related contract. However, a doctor could have many more considerations placed in a contract. If you recently completed medical school and have a significant amount of student loan debt, you might negotiate a partial payment from your employer.

Many doctors need to do more than see patients and consult with staff. Some doctors have administrative duties as well. A contract might determine the type of administrative services and the amount that you are expected to do while on the clock.

Many doctors also might be required to remain on call on particular days and at particular times, such as overnight. The contract clearly should outline the times and how frequently you might have to be on call to handle emergencies and demands of hospital staff.

Virtually every aspect of your contract to perform duties is negotiable. It helps greatly to understand exactly what the contract says and what it requires of you and your employer.

How Can a Lawyer Help With My Contract if I am a Doctor?

The majority of doctors are highly skilled at providing medical services but are not well-versed in contracts. An experienced lawyer can help review a pending contract. Your lawyer can clearly explain what the legal terms mean. Your lawyer can also explain how the proposed terms might affect your work, pay, or benefits. A lawyer can help you understand the proposals in the contract and how to make counteroffers as well.

Making mistakes and signing a substandard contract might lock you into a bad deal for years. A lawyer can help prevent that and will negotiate the best possible terms of the contract.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Help Doctors Negotiate Their Contracts

If you are a medical professional and need help with a contract, our experienced Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. can help. Call us at 215-574-0600 or contact us online to schedule an initial consultation. We are located in Philadelphia, and we serve clients throughout Pennsylvania and New Jersey.

What Constitutes a Material Breach of Contract?

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Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help You With a Contract Breach.

At the heart of every contract are certain conditions that each party must follow. When one or more contractual parties does not abide by the obligations of the contract, a breach of that contract has occurred. There are four main types of contract breaches, and a material breach is the most serious. That is because a material breach permanently breaks the contract.

A material breach of contract causes irreparable damage that makes it impossible to continue the contract. The material breach refers to one or more parties failing to perform the contract. The breach goes to the very heart of the contract itself.

Suppose you have the architectural designs for a particular home that you want to build. You could pay a contractor to build it, but if the contractor builds a completely different home, a material breach of contract would have occurred. In this case, there likely would be no way to continue the contract.

Other Parties Must Be Ready, Willing, and Able

Ready, willing, and able are three important factors in claiming that a material breach of contract has occurred. If you are accusing another party of a material breach, you have to be ready, willing, and able to perform your end of the bargain.

If the contractual agreement were to build a home, you could show that you provided the architectural designs, land, and money to do the job reasonably and effectively. The homebuilder might continually delay or otherwise refuse to do the project as agreed. If so, you could make a strong case for a breach of contract. The homebuilder also could not erect or place a substandard home on the property and declare the contract fulfilled.

Did Bad Faith Play a Part in the Breach of the Contract?

If the breach of contract resulted from bad faith and the case is brought to court, they will likely presume it to be a material breach of contract. On the other hand, a breach that results from negligence is less likely to be considered a material breach. In this case, it would be considered a minor breach.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Can Help You With a Contract Breach

If another party has breached a contract you are a part of, speak with one of our experienced Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. Each party involved in a contract must meet certain obligations. We can help you if another party is not following through on their end of the contract. Call us at 215-574-0600 or contact us online to schedule an initial consultation today. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.