As a business owner, the contracts you create help protect you and your company and allows you to influence the level of success you can enjoy. If you are not fluent in business law, you may have questions about drafting a strong contract.
During the process of drafting a contract that you can rely on, you want to be sure that you are not making any serious mistakes. Here are five mistakes to watch out for a while creating your business contracts:
Settling for verbal agreements
When creating a contract between two parties, everything needs to be in writing. A last-minute agreement doesn’t hold any weight unless you add it in writing to a contract. Without all agreements in writing, the contract may leave you with more liability than you wanted.
Vague terms in your contract
If you do not make the terms of a contract clear, it may create loopholes that leave you in a vulnerable position. Make sure you clearly explain your expectations in your contract so that you do not have to worry about more significant problems later on.
Not looking into potential partners
Before entering into a contract with another party, make sure you know who you are dealing with. If you legally commit yourself to someone who does not fulfill their end of the agreement, it can take considerable effort to cancel your contract with them.
Not keeping contracts current
When the nature of your company changes, you need to be sure that your contracts reflect those changes. When changes happen, pursue amendments or modifications to ensure your legal documents are still benefitting your company.
Creating contracts without an attorney
A business law attorney knows how to make a strong contract that you can count on to both reflect your best interests and protect them. Lawyers can also help you review contracts before signing them and help keep you from agreeing to something that may be detrimental to you in the long run.