What is a mandatory arbitration clause? When drafting your contracts, you may have the opportunity to insert a mandatory arbitration clause, preselecting arbitration in the event of a dispute or litigation. Such a clause could create a requirement that if the opposing party were to have a dispute with you under or about the contract, …
On June 1, 2018, Texas House Bill 2856 came into effect. Bill 2856 removed the requirement that forming an entity with a name similar to an existing entity requires consent from the latter. Instead, Bill 2856 requires that all entities be “distinguishable in the records of the secretary of state.” This change is less restrictive …
What is Carried Interest? Carried interest is a share of the profits of an investment paid to the investment manager, non-equity partner, or sweat equity partner that provides services but no or a reduced capital contribution. For example, a developer or private investment fund manager may invest only 5% of the total contribution but receive …
When seeking to begin a business in Texas, the most common procedure is to complete a Name Availability search through the Texas Secretary of State website, then file an entity with that name if it appears available. However, filing Articles of Incorporation, a Certificate of Formation, and/or an Assumed Name Certificate or “dba” does not …
The Interstate Land Sales Full Disclosure Act (the “Act”) was originally enacted in 1968 as a way to protect purchasers from buying inaccessible, un-developable, and remote property from a developer who claimed the property would be a good investment. Since then, the Act has evolved into a consumer protection statute with many applications. The details …