For Subscribers
Up in Arms
Prepare for litigation with these weapons of mass discussion.
By Marc Diener •
Opinions expressed by Entrepreneur contributors are their own.
Planning for possible litigation is one of the mostuncomfortable issues in business negotiation. Many contract clausesare designed to give one side superior firepower in court.Here's the standard arsenal:
- Service ofprocess: This is a fancy term for the formal notice you owethe other side before you haul it into court. The rules aretechnical and bear directly on a court's legal authority todecide a case. So if your adversary is the type to hide when theprocess server comes a-knockin', you may have a problem. Aservice of process clause designates a "who" and"how" for service, and gets your lawsuit off on the rightfoot.
- Choice of lawforum: When one side is from Maine, and the other is fromArizona, and they're building in Iowa with materials fromAlaska, where do you sue? Choice of forum clauses set out whichcourt the parties will use, and a choice of law clause specifieswhich state's laws will apply. When used effectively, theseclauses start you off with the court and body of law most favorableto you.
Continue reading this article — and all of our other premium content with Entrepreneur+
For just $5, you can get unlimited access to all Entrepreneur’s premium content. You’ll find:
- Digestible insight on how to be a better entrepreneur and leader
- Lessons for starting and growing a business from our expert network of CEOs and founders
- Meaningful content to help you make sharper decisions
- Business and life hacks to help you stay ahead of the curve
