Guaranteed Maximum Price Construction Contracts Explained | What Are Contingencies & Allowances In Construction Contracts?
This article explains the basics of “Guaranteed Maximum Price” construction contracts, including an explanation of contingencies and allowances, two common components of these types of contracts. For a broader discussion on general contractor agreements, check out our article: General Contractor Agreements Explained.
In that article, we describe different types of pricing structures that can be used in general contractor agreements. One of the most common price structures is for the owner to pay the contractor the cost of work plus the contractor’s fee.
The purpose of this article is to explain the rights and remedies under Illinois law afforded to minority shareholders of Illinois corporations and LLCs. Let’s start by defining the terms “minority shareholder” and “closely held corporation.”
What is a Minority Interest in a Corporation or LLC Under Illinois Law?
A minority interest in a Corporation or LLC is a shareholder of a corporation or a member of LLC who does not control the operations of the business. In practice, a minority shareholder is generally anyone who owns less than 50% of the shares of the company, and therefore does not have voting power over the company’s decisions.
The purpose of this article is to provide a summary of Illinois franchise law and federal franchise law as applied in Illinois. Because franchises are governed by both federal and state regulations, franchise law is complex, and an experienced franchise attorney should be an essential part of your team, whether you are a franchisor or franchisee.
The purpose of this article is to discuss common disputes between condominium owners and condominium associations, condominium boards, and individual members of condominium boards in Illinois. We will provide an overview of the primary sources of litigation between condominium owners and condominium associations, as well as an explanation of how such litigation is typically handled according to Illinois law.
Mechanics Liens in Illinois are governed by the Illinois Mechanics LIen Act (770 ILCS 60/0.01, et seq.). The purpose of the Mechanics Lien Act is to ensure that contractors and subcontractors who provide labor, materials, fixtures, or machinery to improve real estate receive payment for their services and materials.
The Mechanics Lien Act provides a mechanism whereby contractors and subcontractors can place a lien on property that they work to improve in the amount of the value of their services and materials. The lien prevents the owner of the property from transferring the property without first paying the contractor or subcontractor who holds the lien. A Mechanics Lien also allows the contractor or subcontractor who holds the lien to foreclose on the property and have it sold in order to satisfy the lien.
5 reasons to work with an attorney when incorporating your business: Why Should I Use An Attorney to Incorporate My Business?
In a previous article, we discussed the benefits of incorporating. In this article we will discuss why it makes sense to hire an attorney to set up your corporation or LLC.
According to the Illinois Personnel Records Review Act (820 ILCS 40), employees have a right to request a review of their personnel records twice a year during their employment and for up to one year after their employment is terminated.
Employees are also entitled to a obtain a copy of their Employer's personnel records. However, the employer is permitted to charge a fee for copying the records, which must be limited to the actual cost of producing the copy.
In deciding which attorney to hire, legal skills and experience are prerequisites. The top 3 qualities that set good attorneys apart from mediocre ones, which you can assess early in the relationship are:
One of the most important things an attorney can do for a business owner is to eliminate “unknown unknowns.” During the life-cycle of a business, there are 11 inflection points where business owners should consult with their attorneys.
In many commercial leases, tenants are required to pay a share of taxes, utilities, and common area maintenance charges ("CAM"). The tenant's share will typically be proportional to the amount of space leased by the tenant relative to the total rentable space of the building. This "additional rent" will fluctuate from year to year. It is not uncommon for landlords to overcharge their tenants for CAM. This is referred to as Common Area Maintenance Fraud.
If you are a realtor giving your client an opinion as to the value that his or her property will sell for or the time that it will be on the market, be careful. You may be at risk for consumer fraud (click here for an overview of consumer fraud law).
In Duhl v. Nash Realty Inc., 102 Ill.App.3d 483, 429 N.E.2d 1267 (1st Dist.1981), the 1st District Appellate Court upheld a cause of action for consumer fraud where a realtor told a prospective client that their existing home would sell “very quickly” for between $162,000.00 and $163,000.00, when in fact the home did not sell quickly and was overvalued by the realtor by $20,000.00. The realtor was hired for both the sale and the purchase of a new home. Because the existing home did not sell as quickly as the realtor represented, the Plaintiffs were unable to afford to stay in the new home and were forced to sell it at a less than ideal price.
Clauses for Employers to Include in Employment Agreements And Independent Contractor Agreements | Illinois Contracts
When hiring an employee or independent contractor, you should make sure that your business interests are protected in the Employment Contract or Independent Contractor Agreement. This can be done with Non-Compete, Non-Solicitation, Trade Secret, and Non-Disparagement Clauses:
If you have outstanding tax liability with the IRS that you are unable to pay, you have several options to either reduce the amount of debt or negotiate a payment plan with the IRS. These include (1) a conventional Installment Agreement; (2) a Partial Payment Installment Agreement; (3) an Offer in Compromise; and (4) Bankruptcy. This article will flesh out each of these options and help you determine which option is most appropriate for you.
An Indemnification agreement is an agreement between two parties providing that if one party is sued for a particular reason, the other party will cover the costs of defending the lawsuit as well as any damages that arise from the suit. It is a useful tool when two parties are intertwined in a larger transaction, and want to divide legal responsibility between them. It protects each party from lawsuits for which the other should be responsible.
Indemnification agreements can be built into a larger contract (like a lease, asset purchase agreement, or employment agreement) or it can be a stand-alone agreement.
A series LLC is a cost-effective alternative for business owners and entrepreneurs with multiple enterprises. If you have multiple businesses that you would like to keep separate for the purposes of liability, you have two options:
In Illinois, when an employee is terminated, the employer is required to make full payment of all amounts due to the employee at the next scheduled payroll. This may include compensation for unused vacation days, but typically does not include compensation for unused sick days or holidays (unless otherwise contracted).
If the employer fails to timely pay the full amount due to the employee, the Illinois Wage Payment and Collection Act provides that the employee is entitled to recover:
For those of you who have not hired an attorney before, the idea of having an attorney review a contract may seem expensive and intimidating — it shouldn’t be.
The purpose of this article is to shed some light on the process of contract review.
Step 1 – Opinion Letter: When a client brings a contract to us for review, the first step is for us to prepare an opinion letter for the client. The opinion letter will lay out a bullet point list of both the items that we believe should be changed in the contract as well as items that the client should be aware of, including obligations that the contract imposes that may not be obvious. Depending on the length and complexity of the contract, this letter is usually very inexpensive to produce.
The purpose of this article is to briefly point out six things to look for in a fair commercial lease:
When two parties litigate in America, each side typically bears its own attorney fees, whether they win or lose. The prominent exception to this rule is when attorney fees are specifically provided for either in a statute particular to the subject matter of the litigation or a in contract between the parties.
When I review or draft a contract for my clients, I always make sure that an “attorney fee clause” (otherwise known as an “enforcement clause“) is included. Attorney fee clauses provide that if either party to a contract successfully pursues or defends a cause of action for breach of contract, the losing party will pay the winning party’s attorney fees.
The purpose of this article is to educate small business owners regarding the two types of corporate entities that are particularly preferable for small businesses: the Limited Liability Company (LLC) and the Corporation.
Incorporating a business is important for two primary reasons: (1) to protect personal assets from business creditors; and (2) to obtain favorable tax treatment for all business income. For more on this, please read our previous article: Why Incorporate Your Business?
In Everything You Need to Know About S-Corp Elections, we explained that both corporations and LLCs can be taxed as S-Corps by filing an S-Corp election with the IRS. We also explained the benefits of filing an S-Corp election.
This article will discuss the effect of an S-Corp Election for a small business. Two foundational articles that you may find helpful are:
The first step in launching your business is incorporating. You should have your corporate form in place before opening a bank account, cutting any checks, or signing any contracts. There are two primary reasons to incorporate your business.
The Illinois Consumer Fraud and Deceptive Business Practices Act is a state statute designed to protect consumers from business owners who use deceptive tactics to prey on consumers. It is referred to by shorthand as the Consumer Fraud Act. It is easier to maintain a cause of action under the Consumer Fraud Act than under common law fraud.
In order to maintain a cause of action for common law fraud, you must plead and prove the following five elements:
Illinois Law Blog: Learn About Law
O’Flaherty Law is based in Downers Grove, Elmhurst, and Naperville, Illinois. Our team has expertise in many areas of law including but not limited to bankruptcy law, business & corporate representation, civil litigation, criminal defense, estate planning, divorce & family law, immigration; probate, guardianship & elder law; and real estate law. If you have any questions or would like to schedule a free consultation, please e-mail us at email@example.com or call us at (630)324-6666.
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