When you are running a business, you have a lot of tasks you can work through to make your business operate more smoothly. One of the most important things you should tackle is ensuring that your business contracts are well-crafted and legally enforceable. That way you can resolve any future disputes more quickly and also avoid misunderstandings because each party knows what they have agreed to, for what price and what will happen if someone doesn’t meet the contract terms.
To ensure you have strong business contracts, you can follow these seven tips:
- contracts in writing. Many business owners like the idea of a handshake deal, but having your business contract in writing makes it more enforceable. Then, you won’t end up having a “he said/she said” situation where it’s difficult to prove what terms you actually agreed to.
- Include the terms for delivery of services and goods for the contract, as well as the agreed-upon costs.
- Make sure your contracts are easy to understand. You don’t need to make a contract full of legalese. Instead, using language a seventh grader could understand is better and more likely to have your contract successfully executed.
- Name each party correctly, by the business’ formal company name.
- Detail how you will deal with future disputes regarding the contract. You could formally agree to enter mediation or arbitration to save on legal costs.
- Detail how either party can terminate the contract. You may want to include language that addresses what will happen if someone breaches the agreement – how they will be given the chance to correct that.
- Include a confidentiality clause if you need to keep private any information revealed during the completion of the contract.
- As you have recently learned ti is important to consider events that may arise that may prevent or delay one or the other party from being able to perform in a timely manner. These include acts of war, labor strife and other events, and should now obviosuly consider issues like pandemics, viruses, and other unanticpated events, whether you may have insuranec coveage for those events or not.
Working with a business law attorney when you craft your contracts will ensure they best protect your business interests and you can enforce the contracts if you need to. It may make sens and be cost effective for you to prepare your initial draft of a contract form and have the attorney review it to make sure that you covered the important points.