1 owner has licensing that all paid for- need NC/Non-solicit w/ restitution clause

[dan_bizman]

What is the name of your state (only U.S. law)? New York

Hi everyone ~ I am an owner of a travel agency with three partners. We've chosen one of the partners to obtain all the necessary training and be contracted with a host agency. We each will contribute $1000 to the cost of the training and other necessities. We need an agreement that 1) prevents him from getting the training and starting his own agency, 2) prevents him from 'selling away' clientele no matter the source of the client, 3) Includes some sort of restitution to the other partners if any of the above transpires, including lost income for having to shut down if he leaves. The normal 'templates' really don't work (or at least the ones I've found). Any assistance is appreciated. ~Dan

 

[adjusterjack]

What you have to understand is that no contract on Earth will actually prevent him from taking the licenses, the money, the customers, running off with it all and not paying you a cent.

All a contract will do is give you a remedy in case it does happen and the way to get it properly written is to have a lawyer do it.

If you aren't prepared to pay a lawyer to assist in the start of your business then you might as well not go into business at all.

 

[dan_bizman]

What you have to understand is that no contract on Earth will actually prevent him from taking the licenses, the money, the customers, running off with it all and not paying you a cent.

All a contract will do is give you a remedy in case it does happen and the way to get it properly written is to have a lawyer do it.

If you aren't prepared to pay a lawyer to assist in the start of your business then you might as well not go into business at all.

Thank you for your response, Jack. I have started many businesses over a 25-year career...after the first one, I learned that 95% of simple contracts and such were simply boilerplate; for which the attorney would charge an ungodly amount. As such, I 'understand' all of what you are trying to say... in addition to 'remedy' there is also the fear of legal retribution...I am a partner in this agency because one of the other partners is a friend of mine that has recently relocated to the states, and because of my business acumen, including several C-level positions internationally. I have read over all of the legal contracts involved in my large international business dealings... This contract is a simple travel agency with two other partners who will be marketing and operations, respectively. Both are relatively non-sophisticated in dealing with U.S. regulation and law and are looking to me to handle everything in that area (without actually practicing law, of course). I'm just looking for feedback from others on certain aspects...although I appreciate your comment.

 

[HRZ]

FRom what I read NY does not favor NCs which prevent somebody from earning a living ...OP, I get your concern , but if I wanted a NC with any workable teeth to hold up in NY , I'd start with an employment lawyer who does NCs in NY

 

[adjusterjack]

I have started many businesses over a 25-year career...after the first one, I learned that 95% of simple contracts and such were simply boilerplate; for which the attorney would charge an ungodly amount.

Then one option is to create your contract and then take it to a lawyer, explain your business intentions, and ask if anything is missing.

That shouldn't cost an ungodly amount.