Stamford Startup Attorneys & Lawyers

What Is the Key Man Clause?

A key man clause (or key person clause) says that when certain executives of an investment firm are absent, the firm cannot make any new investments until they replace them. Investments need constant watching. Therefore, it's important for investment firms to always have someone in charge.

Key man clauses trigger anytime the executives named by the clause aren't spending enough time managing the firm's investments. This can happen if the executive:

• Dies
• Suffers a permanent or long-term disability
• Spends too much time at another job
• Quits or is fired
• Is convicted of a serious crime

Whatever the cause happens to be, if the executive can't do his or her job, the key man clause puts investing on hold at the very least. Sometimes it means the investment firm has to end, depending on how big the firm is and how important the key person was. Wh

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Updated October 26, 2020

What Is a Contract?

A contract is a legal agreement between two or more parties. A business contract includes the following:

• Names of all parties
• Contract beginning and end dates
• Payment amounts and schedule
• Steps to take when a party breaks the contract
• Signature with date

Business Contracts: What Are They?

Also known as a contractual business relationship or an agreement, a contract describes expectations for an interaction. It ensures all parties agree to the terms of their relationship.

A contract should include:

• Offer: One party makes the offer, and the other accepts it.
• Exchange: This includes money, goods, and services.

Why Are Contracts

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Updated August 21, 2020: 

What Is a Hold Harmless Clause?

A hold harmless clause is a clear legal statement indicating that an individual or enterprise will not be held liable in any way for the risk, danger, injury, or damages caused to the other party. Often, such a clause is signed when an individual embarks on an activity or purchase that involves some degree of unavoidable risk. 

This is a decision between two people or groups. It can protect either one party or both. Whoever is protected by the clause cannot be sued for whatever problem may arise.

A hold harmless clause is also called a hold harmless letter or release, a save harmless clause, a waiver of liability, or a release of liability. These agreements are usually seen in leases, contracts, and easements.

When Is a Hold Harmless Clause Used?

A hold harmless clause c

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Updated October 28, 2020:

One of the most difficult parts of starting a business, and one of the least intuitive, is the paperwork piece.

To help alleviate some of that mystery, we've put together a list of some of the most important business documents that will give you a quick reference point after you incorporate.

Docs for Getting Funded/Venture Capital

• 83(b) Election Form: In the startup world of unvested shares, lots of owners elect to be taxed on the fair market value of property they currently have that they may not get to keep. Why? Because the present value is likely lower tha

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What Is Unfair Competition?

Unfair competition occurs when another company uses wrong or deceptive business practices to gain a competitive advantage. The major category of unfair competition relates to intentional confusion of customers as to where the product came from, while the secondary category relates to unfair trade practices. Some of the most common forms of unfair competition include:

• Bait-and-switch selling technique, such as substituting a lower-cost product from a different brand for a more expensive, higher-quality product.  
• False advertising or making false claims about a product to promote it.
• Misappropriation or use of confidential information, such as stealing a competitor's special formulation or other trade secrets.
• Trade dress violation, or copying the physical appearance of a product an

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