A clawback is a contractual provision under which a reward, bonus or compensation is returned, cancelled, forfeited or recovered. Sometimes, the person returning the reward pays a penalty in the event of fraud, misconduct or breach of contract. The law states that the award can be forfeited whether or not it has been paid, vested …
Yes. An employer can claw back a bonus, but this depends on the terms of the contract. If the contract states that the employer can claw back a bonus, the employer will likely do so. The clawback terms may apply under certain circumstances or undesirable events. For instance, clawback can happen in the case of …
You can cancel an anticipatory breach of contract upon a failed statement to perform by the promisor based on your contractual obligations. When you decide to cancel the contract, you may get a refund from the promisor. If the promisor states that they can’t deliver upon the contract terms, you can proceed and file legal …
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Clawback in a contract requires that an employee returns the money paid to them by their employer. Remember that every employee signs a contract promising to deliver as the employer expects. However, when the performance report indicates otherwise, the clawback provision helps the employer solve the case. You have to pay the penalty aside from …
Generally, a shareholder can refuse to sell their shares, per the terms of the agreement. If there is no agreement or the agreement doesn’t have a buyout clause, then the shareholder may be forced to sell their shares. If part of the agreement requires a shareholder to sell their shares, then the majority shareholder can …
You can sue your business partner when their actions cause damage to the business. The legal ground for suing a partner is when there is negligence, abandonment, or breach of contract. A partnership is an excellent way to steer a business in the right direction. It enables partners to achieve their long-term goals effortlessly with …
Preemptive rights grant existing shareholders buying preference when new shares of the company are issued. Essentially, the purpose of preemptive rights is to guarantee that an existing shareholder’s ownership interest is not reduced if the company issues more shares. A shareholder is an individual who owns shares of stock (units of ownership that represent fractional parts, …
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When one party does not fulfill its obligations under a contract, it is called a breach of contract, and the non-breaching party may be able to file a lawsuit. Possible damages could include money owed by the breaching party for services or goods rendered, loss of revenue caused when products or services were not provided …
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If a defendant wants to file a 12b6 motion, they must do so after the plaintiff serves them with the legal filing that initiated the case (generally a complaint or summons) but before filing a responsive pleading to defend themselves against the claims the plaintiff is making against them. By filing a 12b6 motion, a …
While state statutes will prescribe certain rights and obligations that apply to every partnership formed in the state, partnership agreements can dictate additional rights and obligations that the partners agree upon. This allows partners to determine how their business will be run and set particular expectations for how profits, losses, and duties will be shared. …
What Are the Legal Rights and Obligations Afforded by a Partnership? Read More »
