Behind every important business relationship or transaction is a business contract. A business contract should clearly identify the rights and obligations of each party, provide legal protections, protect trade secrets, contain a dispute resolution mechanism, and much more.
But not all contracts are created equal. Some business contracts are drafted quickly and carelessly. Some people purchase generic contracts online, filling in the blanks where directed, without understanding the implications. These types of contracts may help a business owner save time or money initially – but are risky when considering what could go wrong in the future. They also are frequently the cause of litigation down the road.
Are you in need of a business contract? Here are some things to keep in mind:
- Get it in writing: In any business relationship, it is normal for parties to discuss and agree to ideas in person. But for important matters, everything should be in writing. An oral agreement is enforceable but can be difficult to prove, making contract claims based on an oral agreement challenging.
- Be specific: The rights and obligations of each party should be clearly laid out in a business contract. Avoid vague terms and language that could be misinterpreted.
- Use the right terms: It is important to use the correct legal names for the parties named in the contract, whether that is a person, a business or other entity. This will help eliminate ambiguity and identify who is responsible for the contractual obligations.
- Work with a business attorney: When your business is at risk, work with a business attorney to ensure that your contract is as bulletproof as can be. Taking proper steps now can save you time, money, and hassle down the road. Think of it as an extra insurance policy.
An experienced attorney can help you determine what business contracts you need to protect your personal and business interests.
Talk to a business attorney today: If you are in need of a business contract, please contact Chenoweth Law Group PC, at 503.446.6261.