The Importance of Legal Systems in Business
Legal systems shape politics, economics, history and society. They serve various purposes, such as to keep the peace and maintain the status quo, protect individual rights, and promote social justice.
A key to legal essay writing is efficient use of logical argumentation. This is especially important when you are required to write an argument that can be summed up in a few sentences.
Protection from Liability
Business owners need to understand the importance of protection from liability. Legal liabilities include the debts your business owes and any damages it causes to others.
Corporations, limited liability companies and other business entities offer personal liability protection for the people involved with the entity (shareholders, officers, directors, managers). This means that if your company is sued, the creditors can’t take your personal assets to satisfy their claims.
However, there are certain circumstances when the corporate veil can be pierced and the owners can be held personally liable for their corporation’s debts. These are called "carve-outs" and must be considered carefully.
Incorporation
Incorporation turns a sole proprietorship or general partnership into a company officially recognized by a state. This new structure can have advantages for business owners looking to raise capital, limit personal liability and gain certain tax incentives.
In addition, incorporating enables shareholders to protect their investment in stock against corporate liabilities. Shareholders are not liable for debts of a corporation, as long as the business is properly formed and managed.
To incorporate, a business must first write up and file articles of incorporation with the appropriate state. These documents enumerate the shareholders of the business along with other important information.
Insurance
Insurers provide legal protection and support in unforeseen situations. This can include lawyer and court fees, witness expenses, translation costs, and expert fees.
Some policies cover specific areas of law, like contract disputes, while others provide general coverage. It’s a good idea to check your policy’s coverage terms before buying.
Many employers and unions offer prepaid legal plans as part of their employee benefits packages, similar to health insurance. This type of insurance is referred to as group legal or prepaid legal, and it’s relatively inexpensive.
Contracts
Contracts are agreements that outline the obligations and rights of each party. They can also determine who is responsible if something goes wrong.
A contract may be written, but it can also be verbal. This type of agreement can be useful, but it is important to get all of the terms of the agreement in writing.
There are a few requirements that must be met for a contract to be valid and enforceable by law. These include mutual consent, consideration, and intent.
Consideration is the value provided by one party to another. This can be money, goods, or services.
Offshore Trusts
Offshore trusts provide a high level of asset protection by transferring legal title to your assets into the control of a trusted offshore trustee company. They’re also a good estate planning tool.
A reputable offshore trustee company will undergo intense background checks and be bonded by an insurance provider. They’re also thoroughly audited by government regulatory agencies in their jurisdiction.
An offshore trust is not a panacea for every financial concern or tax issue, but it can be a useful tool to protect your wealth from creditors and other potential litigants. Many offshore jurisdictions have enacted statutes that deter creditors from pursuing civil money claims against an offshore trust.
Theories
A significant portion of jurisprudence is the conception of legality, which is frequently covered in lectures and tutorials on the subject of law. These theories are crucial to comprehend because they shed light on prevalent social, political, and legal beliefs.
For instance, according to the natural law hypothesis, morality is ingrained in people from birth. These inherited laws, which have not been altered over time by society or legal authorities, are constant.
The positivist theory of law, on the other hand, maintains that laws are based on how individuals behave in social situations. It also holds that a law's legality is determined by its support from an authority rather than by its morality or immorality.
Categories: Legal
Legal systems shape politics, economics, history and society. They serve various purposes, such as to keep the peace and maintain the status quo, protect individual rights, and promote social justice. A key to legal essay writing is efficient use of logical argumentation. This is especially important when you are required to write an argument that…