In the context of tax reforms and the resulting tightening of government fiscal policy, the market dictates the conditions for businesses to operate in the new realities. It’s essential to constantly stay abreast of changes and, accordingly, ensure compliance with contracts and other legal documentation. While an in-house lawyer serving small businesses can’t provide constant oversight and “keep their finger on the pulse,” the lawyers at our law firm, KORGAN, actively and continuously work with current clients and are constantly reviewing updates to current legislation, allowing us to professionally protect your interests and ensure adequate protection for your business.
Below, we’d like to offer you a selection of 5 myths about legal support and 5 RED flags for future business partners.
5 Myths About Legal Support That Can Be a Mistake
Businesses are especially sensitive to mistakes because they pay for them with their finances, prosperity, and business reputation. How can you avoid easily avoidable mistakes?
Let’s take a closer look:
1. MYTH: Legal support is expensive; it’s better to hire an inexpensive lawyer for one-time services.
REALITY: By choosing a law firm, you’re acquiring a team of professional specialists; finding a single, all-round lawyer is difficult and expensive.
2. MYTH: Legal issues are the same; developing document templates once is enough to eliminate the need for a lawyer.
REALITY: The same issue can contain important details that only a professional will see. Laws change frequently, and a ready-made algorithm or template may become outdated without you even knowing it. In any situation, even a frequently occurring one, it’s better to turn to professionals to avoid unnecessary risks.
3. MYTH: Lawyers download documents from the internet; they don’t have anything tailored to my business.
REALITY: Most similar documents do look similar because they are subject to the same laws. But this is only a first impression. A professional lawyer will transform a basic document into something unique and secure, specifically for you.
4. MYTH: Lawyers are effective in court; in business, they hinder rather than help.
REALITY: In practice, if a case goes to court, it is very difficult for the parties to reach an agreement. The risk of business losses is especially high in court. A prudent approach is demonstrated by those who heed legal warnings and weigh the expected return against the existing risks.
5. MYTH: AI and other electronic platforms provide basic legal literacy.
REALITY: No one can guarantee the up-to-dateness of the information uploaded to such platforms or the compliance of documents with current legislation. Referring to an outdated law or incorrect wording can cause significant losses.
Currently, many legal experts believe that an AI legal assistant is equivalent to a two-year law degree after graduating from university. Furthermore, AI often confuses articles or can simply invent a reference to a regulatory act.
5 RED flags for future business partners
How to identify your business partner’s security before entering into a deal. Look for 5 RED flags; if you see even one, exercise extreme caution.
- The partner insists on 100% prepayment. The well-known formula “money in the morning, chairs in the evening” is very dangerous for you if you’re paying money.
- Absence of a contract or unwillingness to enter into a contract. In a contract, you can always establish responsibilities, outline deadlines, and other important terms. A payment document will confirm payment, and everything else will be within the scope of verbal agreements, which are difficult to prove.
- Reluctance to amend the contract, especially if the contract contains terms that are unfavorable to you. In any dispute, the court will rely on the document you signed.
- Atypical requests from the other party: transferring payment to another party, specifying a different price in the contract, etc. Strive for maximum transparency in your transaction.
- A partner’s refusal to provide details before signing the contract. Refusal to provide the BIN, name, manager information, power of attorney, etc.
This publication was prepared by M. Lukmanova, a partner at KORGAN Law Firm, a professional lawyer with extensive experience in contractual and corporate law.