Issues to Be Aware of When Drafting a Business Contract

 Posted on December 31, 2018 in Business Law

A business is only as strong as the contracts it enters. There are many ways that a business contract can be detrimental to a company: it can favor the other side, it can be unclear from a legal perspective, it can be vague, and it can leave out key terms. Many business owners fall victim to using a template contract found online that is not properly tailored to the parties and their unique situation.

On the other hand, a well-crafted contract can be an important asset to a business, giving the business stability. It should be noted that there are many ways a business contract can be poorly constructed, and those business owners looking to enter into a contract should be aware of these areas. Contract issues that commonly affect business owners include:

• Too much legalese. If you do not understand the terms of the contract because legal jargon is used, this does not mean the contract is a good one. A good contract should be readable and understood by the parties. There may be a term or two that will need to be explained to you by a lawyer, but on the whole, a good contract should be understandable.
• Lack of specificity. A contract has the same effect between the parties as law. Thus, it should be clear what each party’s obligations are. Any detail known should be included. For example, if payment is to be mailed to a party, the address for the party should be written out in the contract. The entire agreement should be reduced to writing. It is dangerous for the agreement to be partially in writing and partially verbal.  
• Failure to address the contract’s termination. All contracts will come to an end, so the contract should contemplate how that will be done and under what circumstances.
• Omitted litigation provisions. Most contracts should include an agreement on what law will govern any disputes arising between the parties, and if a party will be liable for attorney’s fees and court costs in the event of a contractual breach.

A Milwaukee, WI Commercial Contract Lawyer Can Help

If you are considering signing a business contract, you should have an attorney on your side. The qualified Milwaukee, WI business contract attorneys at our firm will use our years of experience in representing businesses when reviewing your contracts and ensuring that they meet your business objectives. 

The attorneys at Gimbel, Reilly, Guerin & Brown, LLP are well-versed in this area of law and understand what issues may arise in your case. Having one of our attorneys review your contracts before you sign can save you money and will make your business stronger. Call our offices today at 414-271-1440. 

Sources:

https://www.businessnewsdaily.com/9929-business-contract-tips.html