Long Beach Real Estate Attorneys & Lawyers

Net 30: What Is it?

Net 30 is an invoice payment phrase that means the customer must pay the entirety of their bill in 30 days or fewer. Often if the customer does not pay within the 30 day period, interest is charged.

Not all clients will understand what net 30 means, so it is important to make a note somewhere on the invoice to let first-time clients know what is expected. If you have not received payment and the deadline for the net 30 payment is approaching, it is good practice to issue a reminder to your customer.

Advantages of Offering Net 30

• As the seller, offering Net 30 to your customers shows that you trust them. Some large companies and government agencies demand Net 30 terms from their suppliers, so offering Net 30 terms to your clients allows you to maintain a competitive edge against other businesses in your niche.

• As the customer, Net 30 is great

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What Is a Condition Subsequent?

A condition subsequent (CS) is an exit clause from an existing contract. The agreement between parties includes language that frees one of them from the deal. This happens when a conditional outcome occurs. A CS relieves a party of all obligations.

What's the Purpose of a Condition Subsequent?

Think of a condition subsequent as an escape clause. It ends a party's contractual obligation. In contracts, all involved parties have certain responsibilities. The CS gives one party the ability to walk away from their promise to perform a duty.

A CS is a kind of insurance for one or more parties. It makes sure that one of the groups in the contract can leave when certain conditions are met.

Think of a contract as a

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What is a Trade Secret?

A trade secret is any information about a business that could give a competitive advantage to another person or business. It is something that is not generally known or easily obtainable by others which can include confidential manufacturing, industrial, or commercial information.

A trade secret can also be described as valuable and exclusive knowledge that created by the work of a person or a company that has an economic interest in keeping it. This is usually because the owner gains a competitive advantage in the marketplace as a result of the trade secret.

A trade secret is defined very broadly and can include any of the following:

• formulas
• practices
• processes
• designs
• instruments
• patterns
• algorithms
• commercial methods, such as distribution or sales methods
• advertising strategies
• lists of suppliers or

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Updated Ocotber 16,2020: 

What is Legal Due Diligence

Legal due diligence is an investigation into a business by re viewing documents and interviewing employees. A legal due diligence investigation is completed when a business or investor is interested in buying a business or investing in that business.

A legal due diligence investigation is seeking information about the business to make sure that the investment or purchase is beneficial. The investigation seeks to reveal all important facts and potential liabilities. Once the facts are collected and analyzed, an informed decision can be made.

There are subcategories of legal due diligence. These subcategories seek more specific pieces of information.

• Intellectual property due diligence

• Business due dili

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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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