Five Common Myths in Business Law

There are a lot of assumptions out there about business lawyers and the legal system in general. If you simply believe these myths instead of investigating the truth for yourself, it could cost you and your business a lot more than you realized. Take a look at the following five common myths in business law.

Myth 1: Lawyers Are Out to Destroy Small Businesses

This myth is simply ridiculous. Litigation lawyers have nothing against small businesses, and in fact are some of the greatest defenders of the underdog. Without a good business attorney, many small businesses are at risk for being crushed by corporate attorneys for much larger companies. No small business should be without a company lawyer.

Myth 2: Only Use an Attorney as a Worst Case Scenario

Believing a myth like this is not in the best interest of you or your small business. It is simply a juvenile belief that can lead to some serious problems for you down the road. Consulting and hiring a business lawyer is not at all something to wait to do. On the contrary, being proactive with legal counsel is the smartest thing you can do in any business dispute. A fear of corporate lawyers is something that could very well end up ruining your business.

Myth 3: Attorneys Demand Outrageous Fees

Some people believe that every litigation lawyer they come near will charge them an excessive hourly rate, and this is by no means true. Of course, some business lawyers charge by the hour, and many of them earn every cent of it by saving you money and headaches down the road, but some business attorneys don’t actually get paid by the hour. Some of them are actually paid on a contingency fee basis. This means they get a percentage of the financial damages received at the conclusion of your business litigation. In other words, the lawyer paid on a contingency fee basis gets paid when you win.

Myth 4: Mailing an Envelope with Your Work is a Copyright

This myth is widely believed by the population but has little truth to it. Sure, the United States Mail will put a time stamp on it, and it might actually work to prove something in private settlements. However, in a court of law, this strategy fails very quickly. Contact your business attorney for the real ways to get a copyright.

Myth 5: Contracts Are Only Good if Laymen Cannot Understand Them

Sometimes, especially in the case of big companies like banks or credit card companies, contracts are hard to read and full of so-called ‘legalese.’ This is the text that supposedly only lawyers can understand. If you are tasked with making a contract, don’t think that making it hard to read will help. The best contracts reflect the terms clearly for both parties and cover all bases.

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2 Responses to "Five Common Myths in Business Law"

  1. Roehrich

    I really treasure your piece of work, Great post.

  2. Sho

    Contingency fee system only works in civil suits ivovlning monetary damages. In US where it’s most widely practised, the “commission” for winning is one-third of the damages awarded to the lawyer.It’s advantage has already been widely noted, i.e. allowing the small men in streets bullied by rich men or big companies access to legal recourse. Furthermore, the lawyer would make sure that the case is worth contesting before litigating, otherwise he’d end up with nothing for his time.In the Singapore system, most lawyers would just take any case as billable hours, whether there’s a realistic chance of winning or not, since there’s nothing to lose. There’s no legal aid for civil cases in Singapore. There’s only CLAS (Criminal Legal Aid Service) with means testing at as low as S$900 p.m. income.In UK, where there’s also no contingency fee system like in US, legal aid covers civil cases too.

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