When it comes down to legal liabilities and the martial art school, they are primarily grouped into two categories: contract disputes or tort.

Contract disputes typically center on the breach of an agreement, usually when one party fails to perform the duties that are contracted for. Either you fail to provide the service agreed upon or they fail to pay for the goods they have contracted to purchase.

Tort, for the record, typically deals in physical injuries usually due to negligence. Every day your school will have these issues. There will be a more information provided on these issues in the future. For a quick note, insurance is a must as is waivers signed by the students. But this still won't protect you if you are being negligent because that isn't a waived excuse.

If you look at what you have done to start your business, you will note that most business transactions involves contract law. Your landlord probably has you on a lease. Your phone company has a contract for service. The yellow pages listing and other forms of advertising are usually paid for on a contract basis as part of their business builder programs, etc. Your water, gas, electric, is also set on some form of contract often requiring a down payment that's refunded when your service is satisfactorily terminated.

Contrary to popular belief, contracts do not need to be written to be enforced. Oral agreements are enforced just as readily as written agreements; the difference is in proving an oral agreement actually existed. Once it is proven, it is as enforceable as a written contract. To enforce either contract to be fulfilled after having its existence proved comes to the next step-- you need to prove how the other party breached the agreement. Were the goods not paid for or the services not provided?

I would still recommend written contracts-- this way you do not have to prove an agreement existed; you already have it written out. A well-written contract will detail out what your expectations are as well as what the other party's expectations are. You may also be able to include a method to address problems that may arise in the fulfillment of this as well. (Arbitration, as an example, is a less expensive method of resolving disputes.) Arbitration is probably one of the best options for the amount of money in dispute often is not worth the legal fees of litigation. Arbitration is also much faster as having a case set for trial can take over a year.

Arbitration: Each party agrees on a specific individual from a list of people. Usually these consist of current lawyers and retired judges. On the date set, both parties tell their story and a binding decision is made. Should either party fail to follow the mandates of the decision, it can be enforced by the courts.

Most lawyers do not like arbitration because there is no time for pre-trial research, and there is really no chance for appealing a ruling that you may not like. But they do recognize it as an option that can be used if both parties are fully informed of its benefits and short-comings.

Works Consulted

• Martial Arts Professional. National Association of Professional Martial Artists- NAPMA