Contracts can seem commonplace, yet they are a big deal. Even though every business interaction involves them, a great deal of work and attention still needs to be paid towards making them legally sound. Don’t settle for a generic contract that is going to fail you when you need it most.
Sometimes contract mistakes are so easy to make that you don’t even notice them. Here is our list of 6 business contract mistakes to avoid:
If something has been verbally agreed upon and stated in every meeting between you and another company, it is still essential to get it down in writing. Every single thing must be written down and agreed upon. Never assume that because something is commonly acknowledged that it is fine to leave it out of the contract. Everything goes onto the page!
Copying and Pasting.
Copying another contract, whether it’s from another venture of yours or just from the internet, is always a bad idea. Your business relationship is unique and it requires a unique contract to represent it appropriately. Contract templates procured online – even ones you pay for – will virtually never hold up in court.
Not Planning for Disputes.
The start of a working relationship is often when you are the most optimistic and excited about a project. That means it is the perfect time to decide what will happen if there are any disputes down the line. Settle on the way to communicate disagreements, the methods by which you are going to deal with them, and what happens if they get elevated.
Not Reading the Fine Print.
Signing a contract after only reading the first paragraph is like ordering a sandwich after only hearing the name. What if you’re allergic to something? Don’t trust that a contract will take care of you and settle for only checking out the main points. Some of the most contentious details may be buried in the small text.
If you are purposefully going vague in your contract writing to avoid making a legal mistake, it is going to backfire. Vague contract writing is never helpful, and it rarely holds up in court. Being overly specific is the best approach – don’t try to leave it up to chance that something will work out in your favor.
Going it alone.
Don’t draft a contract without having a lawyer check it! It is as simple as that. If you write it on your own and just go for it, a lawyer could end up reading it anyway – only down the road and costing you a lot more money. Let the experts back you up on what is best for your business.
Contracts are exciting, but they are easy to mess up. Always have yours verified by a business contract lawyer before signing them into law. If you need help with business contracts – whether it’s writing them, dealing with a breach, or business litigation – contact Pence Law Firm, P.C. today. As your legal counsel, we will take the proper measures that can lead you toward optimal results.