Crafting a Marijuana Business Contract That Will Stand Up in Court

A few weeks ago we ran a post examining the “illegal” nature of marijuana contracts and the challenge of enforcing such agreements, entitled, “Your Cannabis Contract: Is it Worth the Paper its Written On?” Today we follow up on that post and discuss how to draft your contracts so they have the best chance at enforceability. Although states are increasingly moving towards partial or full legalization, as long as federal prohibition remains the law of the land, your adversary in a contract dispute has a colorable illegality argument that you need to be ready for.

So, how best to combat an illegality argument? Craft your contract in anticipation of that claim. Consider including each of the following terms in your agreements:

  • Acknowledgement of IllegalityYes, we realize this sounds weird that lawyers would recommend you acknowledge the illegal nature of your business, but let’s face it – everyone knows that marijuana is
  • ...
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