Cannabis Business Contracts in California
When it comes to developing long-term business security and success, a well-drafted agreement is critical. Knowledge of cannabis laws and pending legislation are essential to your mission.
Cannabis Compliance Lawyers keep our clients protected, informed and prepared with thoughtful, industry-focused contracts.
In this internet age, many people believe they can draft their own contracts by searching for templates online. Unfortunately, even the smartest business people do not really know what certain “boilerplate” language means, much less what might be missing from a contract.
Nearly every transaction is unique, and the contract should be as well. A strong contract is important to providing permanence and predictability to cannabis businesses engaged in varying markets.
At Cannabis Compliance Lawyers, we develop enforceable contracts to assure that our clients are protected and on track for the best outcome possible.
We ensure that we discern and understand the smallest nuances and terms of each deal. We protect your best interests so you can focus on the important work of expanding your cannabis business.
We have negotiated and created virtually every type of corporate and commercial agreement.
In the end, the best cannabis business contracts are those that never need to be enforced, but protect our clients if that becomes necessary.
We work to give our clients the best protection and peace of mind available. Things can and often do go wrong in business deals, but anticipating possible problems and building solutions into the contracts can save hundreds of thousands of dollars in costly litigation and lost opportunities. Importantly, cannabis contracts raise special concerns when litigated.
Although most contracts are presumed to be valid, the marijuana industry is just coming out of the darkness and into the light regarding legal transactions, and are still unfamiliar to most judges.
Remember unlawful contracts are unenforceable. Specifically, if a contract is for an illegal purpose or flows from an illegal act, a court will leave the parties as it finds them.
We draft contracts that require compliance with all state laws and regulations. If you are a landlord or a tenant, your lease agreement must be very specific to risks and compliance obligations.
The last thing any property owner wants is to put real estate at risk of forfeiture.
In the end, cannabis business contracts are not entirely unlike from standard business contracts, but there are unique risks (and rewards) that require special attention.
Please read all contracts for your business and ask questions, get clarification. If you need assistance, please call Cannabis Compliance Lawyers to obtain the best possible contracts for your interests.
Make your cannabis business relationships crystal clear from the start.
Warning: You should never negotiate an important agreement without getting everything in writing.
At Cannabis Compliance Lawyers we recommend having operating agreements, bylaws, and shareholder agreements drawn up to ensure that your company structure and the relationship between its owners are clear, and designed to avoid problems in the future.
When starting a business together, you and your colleagues should have a clear understanding on how your company will operate and on how such things like equity versus debt, voting rights, sweat equity, preferred returns, and owner employment will be navigated.
We have handled hundreds of ownership disputes over the years. Sadly, many of these disputes could have been avoided with better legal advice from the outset.
Our experience tells us that if we plan for unfortunate contingencies, they are less likely to occur, but if they do, the Company has a much better chance of surviving than without that planning and advice.