The Law Office of Lynnette Ariathurai A Professional Corporation

The secret to avoiding a contract dispute may be in the draft

There are many reasons that some California companies (especially those in the construction industry) go out of business. A causal factor that consistently ranks high on the list has to do with contracts. No business owner wants to become entangled in a lingering contract dispute. Drafting a solid contract in the first place is often key, not only to avoiding disagreement, but to keeping a business alive as well.

Any contractor will tell you that a contract dispute is generally a no-win situation. Dealing with such problems obviously takes time away from production, which can cause substantial delays and negatively affect the bottom line. The underlying source of many contract problems lies in how the contract was written.

Paying attention to detail is essential when it comes to drafting a contract. In fact, a clearly written contract that covers all the bases is the best means for preventing obstacles that threaten project completion. There are three basic components to a well-written contract, including a section that provides basic information regarding interested parties, as well as those that describe job details and itemize the terms of an agreement.

Many California business owners find it most helpful to enlist the assistance of experienced business and commercial law attorneys when drafting a contract and reviewing its contents, before any signatures are added. As a business advocate, an attorney can clarify any state or federal laws that impact a proposed plan. He or she can also make sure all obligations and responsibilities contained in a written agreement are clearly understood, which often lessens the chances that a disagreement will interrupt work down the line.

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The Law Office of Lynnette Ariathurai, A Professional Corporation
39300 Civic Center Dr., Suite 110
Fremont, CA 94538

Phone: 510-794-9290
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