Description
The expansion of marijuana's legal status nationwide has positioned the cannabis industry for massive growth and fueled a surge in cannabis-related business opportunities.
Besides individual entrepreneurs, many large and mid-sized companies have sought to tap into new revenue streams by pursuing contracts with businesses that have established cannabis-related operations. Contracting with such cannabis-related businesses may be lucrative. Still, marijuana's federal criminal status--and the patchwork of conflicting local, state, and federal laws--means doing business in this industry triggers distinct legal issues relating to contract validity and enforcement.
These issues give rise to contract challenges unlike those in any other industry. And while some courts show a trend toward robust enforcement of cannabis-related contracts, uncertainties persist on the enforceability of these agreements. Whether cannabis distribution engagements, company acquisition contracts, or third-party equipment-supply contracts, the risks of entering into a contract in the cannabis industry remain high because of enforceability issues.
Multiple innovative options are available for informed counsel representing companies contracting with cannabis-related businesses, including contractual provisions addressing marijuana's legal status, subject matter description, contract invalidation, choice of law and venue, severability terms, and mediation or arbitration.
Listen as our veteran panel of practitioners explains the unique considerations and legal risks facing cannabis-related businesses and their partners, identifies specific techniques counsel should consider when entering into cannabis-related contracts, and provides insights for drafting contract terms to lower the legal risks of cannabis business arrangements.
Presented By
Mr. Gard represents numerous patients, doctors and marijuana businesses throughout the state of Colorado and has advised people from all over the country. He advises both state and local governments in their development of medical marijuana business regulations. Mr. Gard is widely considered one of Colorado’s leading marijuana attorneys. Since the passage of Amendment 64, which legalized adult possession and cultivation of marijuana in Colorado, he has been working with state and local officials in developing regulations for the retail marijuana industry and was appointed by the state to participate in the rule-making progress. Over the last several years, Mr. Gard has been working with the U.S. Congress to assist with an analysis of the Federal Code to determine the various areas which are impacted by the state marijuana laws in hopes of reconciling state and federal law in the near future.
Ms. Young’s areas of practice are mainly business and commercial litigation, including partnership disputes, breach of contract, computer fraud and abuse litigation, financial services litigation, business torts, professional negligence, and general counsel work. She also handled real estate disputes including non-disclosure matters, construction defect, neighbor disputes, and landlord/tenant issues. Many of Ms. Young’s clients are cannabis businesses, breweries, tech companies, and various startups- all of which reflect the San Francisco Bay Area’s best and brightest. Ms. Young is a member of the Board of Directors of the National Cannabis Bar Association and is a frequent presenter on cannabis law issues.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Thursday, May 29, 2025
- schedule
1:00 p.m. ET./10:00 a.m. PT
- Risks of entering into a contract in the cannabis industry
- Federal law enforcement policies and state law conflicts
- Cannabis-related contract enforceability issues
- Recent judicial decisions
- Specific techniques counsel should consider when drafting contract clauses for cannabis businesses
- Preliminary statement
- Express acknowledgment of marijuana illegality
- Subject matter description and contract invalidation
- Choice-of-law, venue, and conflict-of-law provisions
- Severability terms
- Independent consideration
- Remedies
- Arbitration and mediation clauses
- Best practices for different types of cannabis-related contracts
- Additional legal concerns for counsel representing cannabis businesses
The panel will review these and other high priority issues:
- What are the risks of entering into a contract in the cannabis industry?
- What are the practical implications of federal and state law conflicts?
- What are the primary cannabis-related contract enforceability issues?
- How effective is arbitration as a dispute resolution mechanism for cannabis-related business contracts?
- What are the specific techniques counsel should employ when drafting arbitration clauses for cannabis businesses?
- What concerns should counsel have regarding remedies given the illegal nature of the subject matter under federal law?
- What are the most cannabis-friendly jurisdictions?
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