On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Business Formation & Planning on Wednesday, December 16, 2015.
A business contract isn’t just a piece of paper. It’s a document that explains who you are doing business with, what type of business will be conducted and much more.
What is the person’s reputation in the industry? How has the business dealt with past deals? What is their reputation?
Consider the following factors before you sign an agreement:
- Read the full agreement. This seems simple. However, all too often individuals sign agreements without reading the terms and conditions. If there is language that seems subjective or unclear, have an attorney review it with you and suggest amendments.
- Know who’s involved in the contract. Who does the contract include? What parties will be held liable if there is breach of contract? Be sure the contract clearly identifies all parties.
- Be aware of the length of the agreement and how it affects business. Make sure the actual length of the contract is clearly identified within the contract. If the contract is going to be renewed, how will that be handled? If the terms for the length of the contract are unclear, you can have an attorney assist you in making that language clearer.
- Know your rights. Know what you are entitled to under the contract and what you are required to deliver. What happens if something goes awry? An attorney can draft terms in a contract to protect you from risks of liability and help you get what you bargained for from the deal.
While you may not consider working with a lawyer for drafting and signing a simple contract, the reality is that a lawyer can help save costs for disputes that could arise in the future. The time and money you spend, upfront, can ultimately be much more cost-effective. Consider how legal contract representation could benefit your situation.