Business owners work with partners, employees, and third-party vendors. Because of the number of variables and potentially large sums of money involved, there is a strong likelihood that disputes could surface. Mitigating and managing these issues is part of what it means to be a business owner. Well-drafted contracts account for these disagreements and can serve as a definitive solution in the wake of a highly contested dispute.
Though the relatively low cost of a do-it-yourself contract is appealing, they are boilerplate and weak substitutes for contacting a business law attorney. They will take the time to understand your circumstances and the challenges of the industry you are involved in. They determine ways to save you from potential pitfalls that could emerge from your business deals.
Business law attorneys understand how to draft a contract using language that doesn’t lend itself to interpretation. Not only will they scrutinize and read the contract from the viewpoint of someone who is looking to challenge it, but they will draft it so the result is favorable to you.
What Makes a Contract Strong
Contracts are a means to document a binding agreement between or more parties and, when written appropriately, are enforceable by law. A proper contract will list out each party. Your attorney ensures that each person’s name (or business name) appears correctly on the contract, and they will continually reference it throughout the document. Although oral agreements can be enforceable, always seek to document the terms of the agreement.
Imagine that you own a business that makes wooden furniture. You may purchase the materials to build your products through a third-party vendor. The contract that governs this relationship should include the following:
- The name of your business and the supplier’s
- The obligations of both parties
- The timeline in which the materials need to be received
- The expectations that both parties have
- Possible repercussions for failing to those obligations
Your contract is a legally enforceable document that protects your interests in the event of a dispute. Imagine that your supplier delivers the raw materials weeks after you expected them to arrive. Because your supply chain has been disrupted, your business suffers. Yet the supplier demands full payment. What began as a meeting of the minds has evolved into a dispute that could potentially lead to litigation, which will likely cost you more in legal fees than it would have if an attorney properly drafted your contract.
The contract is your method for effective resolution. If your contract stated when the supplies needed to be delivered (e.g., the first of each month) and the penalties associated with being late, you have a defined path for what occurs next.
Fraser, Wilson, & Bryan, P.C.
The attorneys at Fraser, Wilson, & Bryan, P.C., believe that a properly written contract reduces the potential for conflict. We can review your contracts or develop ones that protect your interests. Should the other party fail to meet their obligations, we can work with you to ensure the contract is enforced through the court system. Contact us to set up a free consultation.
