Glossary of terms that every attorney needs to know

Key quotes:

• "Each and every startup founder needs a good legal counselor to provide sound advice."
• "Lawyers are trained to identify every possible risk and potential pitfall, no matter how remote."
• "You are the CEO of a software startup negotiating a very lucrative contract with a Fortune 500 company."
• "The potential customer pushes back on this point because it would be too difficult and time-consuming for it to scan all of the computers in all its offices around the world and guarantee with certainty that no instances of the software would remain."
• "Understand the relative importance of the terminology your attorney suggests and then make a business decision about whether another round of negotiations with the potential customer or investor is worthwhile."
• "Attorneys generally advise clients not to share information with potential investors before having a signed non-disclosure agreement (NDA)."

Key quotes:

• "Joint and several liability Arises as an express term of a contract where, say, several people agree to be liable for a debt, the party with the benefit of the obligation may sue any or all of those people."
• "Limited Company A type of business structure that offers limited liability and legal protection for its owners."
• "Power of attorney A formal written legal document by which one person gives another power to represent them or act in their place for certain purposes."
• "Terms of use (TOU) or Terms of service (TOS) is the name given to the agreement that is the contract between the licensor and purchase of software or the user of a website or online service, which sets out the terms of use of the software, website or online service."
• "If you need to go to court, no matter how many business law terms you know, you can’t make it without a lawyer."
• "Learn, comprehend and use these terms above in your day-to-day business dealings with the law and you are fine (and will never need to learn the “court” legal terminology)."

Key quotes:

• "Sample language: “If the promotion hits the revenue goals outlined below, we will set up a bonus structure as follows: This is a single, project-based fee that is not dependent on results nor on the amount of time it takes to complete."
• "Projects begin when Contractor receives payment and this signed agreement.” A performance-based fee that is calculated as a percentage of sales made from the package as long as it is the control."
• "Sample language from a client email: “Generally how we work with freelancers for our group we make a $1,000 deposit with you that covers the delivery of a Headline/Lead and general outline of where the copy will go."
• "Sample language: “We will require 50% payment upon signing of this agreement and the remaining balance will be due in 30 days.” This is a partial or total payment that is due before work starts, also called a deposit."
• "You are also responsible for final proofreading of all the [copy/design/creative] .” This section spells out when and how a client can request edits once the work has been submitted by the freelancer."

Key quotes:

• "✨Note: This post eventually led to the creation of The Holloway Guide to Raising Venture Capital, a 340-page resource for entrepreneurs, with technical detail, practical knowledge, real-world scenarios, and pitfalls to avoid."
• "The Open Guide to Startup Fundraising is a work in progress, and will eventually be published on GitHub in a format similar to The Open Guides to Amazon Web Services & Equity Compensation."
• "In order to finance a company, founders sometimes sell part of their business in exchange for money or “capital” from investors."
• "For a few years, a firm could be a seed-stage firm, but then they might raise a larger fund and decide to invest in later stage companies."
• "The term “accelerator” is used to describe early stage institutions that invest anywhere from $10k — $100k+ in exchange for 2–10% of the company."
• "🚧 — Crowdfunding platforms are websites that allow entrepreneurs to raise money from a large community."

Key quotes:

• "However, it’s not okay to believe false statements that everyone claims for true because they can ruin your business, cost you a lot of money and break a reputation you have been building for years (see Legal Fact #8)."
• "The only solution we could think of was to gather the most common and offer you a list covering the most common false “facts” to watch out for, as a start: The assumption that unless you sign an agreement, it’s not enforceable by wall, has ruined many business relationships."
• "Many small business owners decide to not pursue debt collection because they think it is either too expensive to hire a lawyer or a debt collector, or simply because they don’t want to go to court."
• "You can handle a lot by yourself but make sure you have some legal background like an Essentials Of Business Law workshop."
• "It’s not just that but rumors spread like pollen these days and once your false statements are discovered, you might just turn into the next celebrity business that got ruined by social media."