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I) Introduction: Litigation can be disruptor to start-ups which are usually struggling to ground in market. Litigation is expensive, time consuming, reputational damage and draining. Strategizing to avoid litigation is crucial for business growth as well as business sustainability.<\/p>\n
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II) Ways to Avoid Litigation: There is no straight formula to avoid litigations whether it is business or individual. But doing fair dealings, transparent transactions, good relationships with all the stakeholders, using well drafted terms, clearly defined policies and well-structured contracts, following all applicable laws, being compliant, following best practices and adhering to ethical business principles are key ways to protect business against unwanted litigation.<\/p>\n
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Along this above list the following pointer would be of great help to early start-ups to avoid the unnecessary litigation cropping up.<\/p>\n
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i) Business Registration: Formation of business entity as soon as possible which helps in governance of the affairs of the business and
\nshareholding pattern or partnership aspects depending upon the type of business entity.<\/p>\n
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ii) Co-founder Agreement: It is imperative to well drafted Agreement in writing if the start-up has partner\/s. Co-founders disputes can be ugly as
\nwell as elementary many a times to destroy whole business. Clearly defining the role of each of each founder is must along with profit and loss
\nsharing.<\/p>\n
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Pre-determined exist strategies in case of disagreement or conflict or otherwise breach of terms agreed prior business transaction is very
\nhelpful instead leading to litigation and fighting with one another. Blame game and adversarial approaches can be avoided to an extent via this co-founder agreement.<\/p>\n
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iii) Written Agreements: For businesses it is imperative to have written agreement for all the transactions. Verbal agreements and oral business
\nunderstandings lacks clarity, many a times terms will be vague, scope for miscommunication and misunderstanding is more. This lack of clarity
\nand vagueness mostly boosts conflicts thereby business end ups in adversarial position leading to unwanted litigations. Also consider negotiating the agreement before executing to avoid having conflict later stage.<\/p>\n
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iv) Think Before Ink: Understand prior signing each document is must. Not only written agreements but it is equally important to understand the
\nagreement or any other document fully prior signing them. Whenever you find any term of the agreement unclear then discuss on that and
\nmake sure what it means to your business. Don\u2019t assume and presume the terms of agreement. Take professional help as and when required in
\nthis regard especially commercial lawyers or business lawyers will be great of help.<\/p>\n
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v) Follow law beyond checklist: It is must to know which laws are applicable to your business, may sectoral or otherwise. Once you know
\nwhat are compliance’s you need to follow abide by it but don\u2019t try to come with short cuts or ways to avoid the laws. Messing around the law like
\ninviting the trouble if not now but in the future. Whenever the law is not clear then don\u2019t try to excuse but go with best business practices.<\/p>\n
<\/p>\n
vi) Manage IP: Protecting your intellectual property is crucial which act as shield to your business. In order to protect IP, identify the IP and
\nwherever required register it. Strategize your decisions on trade secrets prior. Utilise Non discloser Agreements prior disclosures and avoid
\nmisuse of IPs by others including your own employees. Protecting IP also helps against third party infringement actions.<\/p>\n
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III) Takeaways and Suggestions: Avoid the litigation as far possible and make this as integral part of your business culture and business
\ndecision. Don\u2019t assume or presume things unless you clear as to what it means to you and your business. Also don\u2019t consider of involving the
\nlawyers only after dispute to fight your cases in court of law but involve business lawyers from day one of your business during day-to-day
\noperations of business to avoid unnecessary litigation.<\/p>\n
[\/vc_column_text][vc_empty_space][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Disclaimer: The information provided under this website is solely available for informational purposes only, should not be interpreted as soliciting or advertisement. We are not liable for any consequence of any action taken by the user relying on material \/ information provided under this website. It\u2019s not legal opinion in cases you have any legal issues then in all those cases you must seek independent legal advice.<\/em>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]* Write up by Team Purple Pursuits, for more details you can reach to us info@purplepursuits.com<\/strong>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":" [vc_row css=”.vc_custom_1591374827118{padding-top: 0px !important;}”][vc_column width=”1\/4″][vc_single_image image=”12359″ img_size=”full” style=”vc_box_border”][\/vc_column][vc_column centered_text=”true” width=”3\/4″ css=”.vc_custom_1596058830459{margin-top: 0px !important;padding-top: 0px !important;}”][vc_column_text css=”.vc_custom_1608074369644{margin-top: 0px !important;padding-top: 0px !important;}”] I) Introduction: Litigation can be disruptor to start-ups which are usually struggling to ground in market. Litigation is expensive, time consuming, reputational damage and draining. Strategizing to avoid litigation is crucial for business growth as well as business sustainability. II) Ways to Avoid Litigation: There is no straight formula to avoid litigations whether it is business or individual. But doing fair dealings, transparent transactions, good relationships with all the stakeholders, using well drafted terms, clearly defined policies and Continue Reading <\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":12359,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-12358","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-write-ups"],"_links":{"self":[{"href":"https:\/\/purplepursuits.com\/index.php?rest_route=\/wp\/v2\/posts\/12358","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/purplepursuits.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/purplepursuits.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/purplepursuits.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/purplepursuits.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12358"}],"version-history":[{"count":8,"href":"https:\/\/purplepursuits.com\/index.php?rest_route=\/wp\/v2\/posts\/12358\/revisions"}],"predecessor-version":[{"id":12368,"href":"https:\/\/purplepursuits.com\/index.php?rest_route=\/wp\/v2\/posts\/12358\/revisions\/12368"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/purplepursuits.com\/index.php?rest_route=\/wp\/v2\/media\/12359"}],"wp:attachment":[{"href":"https:\/\/purplepursuits.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/purplepursuits.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/purplepursuits.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}