Keep it Legal Blog

Whether you’re an entrepreneur looking to sell your company or an investor aiming to acquire a business, understanding term sheets is essential. A term sheet is a non-binding document that outlines the key terms and conditions of a proposed business deal. It serves as a blueprint for the more detailed, legally binding agreements that will follow. Note: Although term sheets are typically referred to as non-binding (I even did so in the paragraph above), some clauses in the term sheet may create legal obligations, so be sure you understand where those obligations may arise. Term sheets are crucial in setting…

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Businesses based in California have been barred, in most cases, from enforcing noncompete clauses against former employees for over 150 years. But most other states still allow employee noncompete clauses. Last week, however, the Federal Trade Commission (FTC) announced a new rule that would ban most noncompete clauses nationwide. The rule is not in effect as of the date of this post. It would go into effect 120 days after the rule is published in the Federal Register. However, the rule has already been subject to legal challenges, so it’s possible courts may delay the rule’s implementation and either strike…

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