Writing Stronger Contracts to Protect Your Business
A strong business contract is a must to make sure you and your company are completely protected from potential legal action. Here are just a few tips to help ensure your peace of mind when it comes to the contracts you create.
Don’t Make Simple Mistakes
It might seem obvious, but a surprisingly large number of business contracts contain simple errors such as having the wrong name of the company. Even a seemingly minor error can be used against you in court, eliminating any liability protections you may have otherwise had. This is one of the many reasons why you need to make sure you have an experienced, skilled attorney take a close look at your contracts to make sure everything is exactly correct.
Putting an arbitration clause in your contract can help you cut costs substantially and possibly helping you avoid the court system entirely. In a nutshell, arbitration is a proceeding that takes place outside of a courtroom to help settle disputes. The arbitrator is a person who makes a binding decision after hearing evidence from both sides.
It is a far faster and more efficient method than having to go to court. Plus, it’s private.
Defining Payment Obligations
One of the most important components of any contract is determining exactly when a payment should be made and who will be responsible for paying it. This is a potentially very contentious matter, so you can’t ignore any details. For instance, you need to include information in the contract about what will constitute the satisfactory completion of a job.
Details, Details, Details
Speaking of details, you have to put everything you can think of in writing. Simply talking about certain details with your client won’t be sufficient because any sort of verbal communication may not stand up in court. Don’t assume anything.
Termination of the Contract
There may be times when certain circumstances other than the completion of the job will determine when you stop work. For instance, if the other party fails to meet deadlines and you can’t perform your work as a result, you want to make sure you won’t be at risk of breaching the contract.
Talk to an Attorney
Rock-solid contracts are the foundation of any type of business, but it can be very easy to make a careless mistake that can cost you a great deal in the long run. This is especially the case if you don’t have a lot of experience in writing strong business contracts.
Talk to the attorneys with Irpino, Avin & Hawkins, and we will make sure your contracts are strong enough to withstand any potential legal challenges that may arise. If you would like more information or you would like to set up a consultation, please give us a call at 1-800-7500-LAW or contact us online. We can perform a thorough review of your current contracts and point out any possible weaknesses that could cause problems down the road.