Engaging legal advice means consulting a lawyer in a timely manner regarding legal questions, contracts, or risks. At Musch Legal, we observe that preventive advice is almost always cheaper than reactive work during disputes. Yet, many entrepreneurs wait until it is too late. A structured overview of the moments to engage legal advice helps to make optimal use of legal advice and avoid costly surprises.
What is the legal problem? (Why is advice engaged too late?)
Entrepreneurs often wait until a problem manifests itself before seeking legal advice. By that time, contracts have already been signed, permits missed, or disputes have arisen. Preventive advice during the contract phase prevents the vast majority of litigation. Those who only engage a lawyer during a crisis pay both for a reaction and for resolving avoidable damage.
What does the law say? (Which frameworks make advice desirable?)
No law requires legal advice in every context, but various regimes make it practically necessary. CSDDD (Directive (EU) 2024/1760) requires a coordinated compliance approach. Section 7 of the UK Bribery Act 2010 requires adequate procedures, including expert advice. For listed companies, the Corporate Governance Code applies. For directors' liability under Article 2:9 of the Dutch Civil Code, sound legal support is an element of careful management.
External lawyers enjoy privilege under Article 218 of the Dutch Code of Criminal Procedure — relevant for compliance-sensitive work.
Timing
Right
Type of advice
New market
Export or establishment abroad
Market entry advice + templates
Large contract
Value above 100,000 euros
Contract review + negotiation
Joint venture
Collaboration with partner
SHA + deadlock mechanism
M&A
Acquisition or sale
Due diligence + SPA
Dispute
Non-payment or breach of contract
Strategic analysis + enforcement
Compliance
New regulations (CSDDD)
Implementation advice
Cyber incident
Data breach or ransomware
Crisis response + GDPR notification
Timing
Right
Type of advice
New market
Export or establishment abroad
Market entry advice + templates
Large contract
Value above 100,000 euros
Contract review + negotiation
Joint venture
Collaboration with partner
SHA + deadlock mechanism
M&A
Acquisition or sale
Due diligence + SPA
Dispute
Non-payment or breach of contract
Strategic analysis + enforcement
Compliance
New regulations (CSDDD)
Implementation advice
Cyber incident
Data breach or ransomware
Crisis response + GDPR notification
What risks do companies face? (What threatens without timely advice?)
Weak contracts with unintended liability. Compliance violations with fines. Proceedings before the wrong court with high costs. Loss of bargaining position in M&A. Personal directors' liability under Section 2:9 of the Dutch Civil Code due to inadequate supervision. Insurers exclude coverage in the event of inadequate legal preparation. Reputational damage in the event of public incidents.
Practical example from our practice (How much did timely advice save an SME?)
Musch Legal was engaged by a Dutch exporter who had signed a contract with a Russian client without a sanctions clause. Following new sanctions, delivery was prohibited. The client demanded 1.8 million euros in damages. We defended the case based on force majeure under Article 6:75 of the Dutch Civil Code. When renegotiating contracts for other business relations, we incorporated sanctions clauses. The investment in preventive advice (25,000 euros) versus reactive defense (180,000 euros plus settlement risk) is a significant difference.
What can you do? (How do you organize legal advice?)
Establish internal policies regarding engagement moments. Apply threshold amounts for mandatory contract review (typically 100,000 euros). Legally assess every new market entry in advance. For M&A and JV: standard legal advice. For ongoing support: external legal counsel retainer. Train sales and management on legal triggers. Engage Musch Legal for a scope discussion regarding your engagement policy.
What does an international trade lawyer do?