In today’s discourse, the term “hush money” often carries a sensational undertone, highlighted in numerous high-profile instances, including allegations involving public figures like former President, Donald Trump. However, beyond the headlines, it’s crucial to understand the legal foundations and acceptability of paying for confidentiality in many professional and personal contexts. The Legality of Confidential Payments […]
Category: Business Law
How Texas Lawyers Manage Client Funds
In the realm of lawyers, the management of client funds is governed by strict regulations to ensure integrity and trust in the attorney-client relationship. In Texas, the Interest on Lawyers Trust Accounts (IOLTA) program plays a critical role in this process. What is an IOLTA? An IOLTA is a special type of trust account for […]
Are Verbal Contracts Binding in Texas?
Verbal contracts are often confusing because of a mixture of myth and misunderstanding. In Texas, the answer to whether these agreements are binding isn’t a simple yes or no answer. It’s a nuanced journey through the state’s laws, particularly the Statute of Frauds. At its core, Texas law does recognize verbal contracts as binding, with […]
The Legality of Recording Conversations in Texas: One-Party Consent Explained
In the heart of Texas, the rules around recording conversations hinge on the principle of one-party consent. This means that as long as one participant in the conversation consents to the recording, it is legally permissible. Embedded within the Texas Penal Code § 16.02, this law offers a clear-cut approach to recording conversations, emphasizing the […]
Executive Compensation Regulation in Texas
The recent controversy surrounding Elon Musk’s compensation package, which was invalidated by a Delaware judge, has cast a spotlight on the intricate world of executive compensation. This high-profile case serves as a compelling entry point into the broader discussion on how Texas corporations can navigate the complexities of structuring executive compensation packages. While Tesla’s situation […]
The Applicability of Personal Guarantees in Texas
A personal guarantee is a legal undertaking by an individual (the guarantor) to repay a loan given to a business if the business itself fails to repay. This commitment is commonly requested by lenders when a business does not have sufficient credit history or assets to secure a loan. Personal guarantees are governed by state […]
Employment Agreements and Bonus Incentives
We previously covered general considerations of employment agreements in Texas. Today, we give extra considerations to disputes that may arise from such agreements, or the lack thereof, with a focus on bonus pay incentives. Wages paid on commission and bonuses are typically subject to the terms of either an agreement between the employee and employer or […]
What to Know About the Corporate Transparency Act
Enacted in 2021, the Corporate Transparency Act goes into effect January 1, 2024. The purpose of the Corporate Transparency Act (CTA) is to address issues surrounding anonymous shell companies with the overall aim of fostering transparency and accountability. This act imposes new reporting responsibilities on businesses large and small, so it is important business owners […]
Understanding the Balance Between Copyright and Fair Use Laws
In today’s digital age, the line between content creation and content sharing has become increasingly blurred. With the ease of access to a vast range of materials online, questions surrounding copyright infringement and the principle of fair use have never been more pertinent. This blog post aims to provide a brief overview of these topics […]
Texas Creates New Specialized Business Courts
The State of Texas is soon to join more than half of the other American states in establishing a set of civil courts dedicated solely to business litigation. Although Texas is a business-friendly state with low taxation and minimal business entity regulations, it has not historically had a court dedicated exclusively to resolving business disputes. […]