Legal contracts are a fundamental part of doing business. With a good written contract that carefully and clearly sets out the terms and requirements of a transaction, costly liabilities and pitfalls can be avoided. When a party to a contract violates, intentionally or not, the agreed-upon terms, then an experienced legal team can seek a cost-efficient, out-of-court resolution or litigate if necessary.
Business agreements between companies operating in different jurisdictions often have "choice of law" provisions that govern which jurisdiction's laws will apply to the business relationship. If a dispute arises, then a choice-of-law provision usually resolves the issue of which law is to be applied to address any issue or dispute. We touched on a slightly related matter in our previous post on choosing the appropriate state in which to form your business.
In 2005 IBM stepped away from the consumer products market to focus on business customers. The move came after years of trying to compete with Apple, which of course has dominated the consumer market with iPhones and iPads. The rivalry between the two companies dates back to when personal computers first became available, so in a way the recent announcement of the business' partnering up was a bit of a surprise.
Anyone who has been following business news may have heard that Amazon and the publishing company Hachette have been fighting over whether to make the publishing company's books available for preorder. While Amazon is currently refusing to allow consumers to order the books before their release date, there are also reports that this is part of a larger contract dispute between the two companies.