Business Contracts: The Importance Of Creating A Strong Foundation

Business Contracts: The Importance Of Creating A Strong Foundation

If a business can be compared to a human body, contracts are its bones. They hold up the company, protect its most vital organs, and extend throughout every aspect of the business…and things go terribly wrong when they break.Even a minor flaw in a contract can have devastating consequences, which is why it is usually preferable to work with an attorney rather than risk trying to do it all yourself. This article will help business builders and entrepreneurs understand the danger of handling contracts by themselves and the advantages of working with an attorney, including:

  • Why customization is so important in legal contracts for any business.
  • Two common dispute types that can be avoided through effective and professional contract creation and review.
  • What to do when a party breaches or breaks their contract (and why you need a lawyer to do it).

Why Should I Work With An Attorney To Create, Review And Interpret Business Contracts?

If a business owner can afford lawyer-drafted contracts or even just lawyer-reviewed contracts, they should take full advantage of such services. Customized agreements and contracts can be built around a business’s most common pain points to shore up any weaknesses.

Your experience running the business and your attorney’s understanding of the laws combine to create the ideal contracts for your situation. They can even help you deal with problematic customers or avoid them altogether in the future because you know exactly how your contracts will work in your favor.

What Common Business Disputes Can Good Contracts Help Me Avoid?

There are many different kinds of disputes that can disrupt, undermine, or completely destroy your business, which is why the legal protections offered by contracts are so essential.

The list of all possible disputes is nearly endless, just as endless as the list of all the ways a contract can help you avoid them. However, there are certain common types of disputes that arise again and again which can help demonstrate the importance of solid contracts.

How Can A Business Law Attorney Help Me Avoid Partner Disputes?

Partnership disputes, unfortunately, are among the most common types of business disputes. Often, friends will go into business together thinking that since they are friends, they will always find a way to resolve their issues.

What they do not realize, and what any attorney will point out, is that everyone gets along is a great strategy until they don’t. You cannot anticipate everything: life partners come into the picture; parents or family members give advice on the side; little seeds of doubt or resentment can be planted until suddenly, your best friend is not even a friend at all.

If you have an agreement that addresses any disputes at the outset or at least determines who is going to be the third party that resolves such disputes or establishes rules for resolving them, you will be much safer. Resolving the disputes that do arise will be easier because then you could just have a third party be the final say.

Typically, these disputes revolve around ownership, changes in leadership, management issues, disagreements on the direction of the business, hiring disputes, or even financial disputes. You should contract with regard to all of these issues and make sure that you and your business are protected through the contract with the help of an attorney.

How Can Contracts Protect My Business Dealings With Other Companies And Businesses?

The next most common type of dispute is probably between businesses. Many companies use other businesses or contractors, so having solid service provider agreements and independent contractor agreements is essential.

These contracts not only help govern the use and management of intellectual property but also, crucially, payment. Money is often at the heart of most disputes, such as when someone asks for a 30-day deposit, but they have not even done several crucial steps. A contract can plan for that eventuality.

You can make explicit when the work needs to be done and whether or not a deposit is refundable if the work does not get done in that timeline. Once they have signed, both parties are then responsible for following through with what they said they would do, with no room for ambiguity or backing out.

Why Should I Always Consult An Attorney When It Comes To Contracts?

A contract exists to make sure both parties perform based on the expectations laid out in the document. A common subset of these that everyone needs is employment contracts.

Without well-crafted contracts, employment disputes become common and expensive. Having the proper policies and procedures in place so both parties’ expectations are managed in writing can help prevent a lot of these disputes.

When it comes to the bones of your business, would you rather have cheap, brittle ones that do not fit together well, or solid, strong ones that never break and work smoothly together? Even if you are determined to write or find the contracts yourself, always be sure to have them reviewed by an attorney. If not, there is a high chance they will come back to bite you.

For Business Contract Drafting, Review, And Interpretation Services, an initial consultation with an experienced attorney will put you on the path to protecting your business. Get the information and legal answers you are seeking by calling (214) 307 9868 today.

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