How to Draft a Solid Business Contract

Business Contract Lawyer

When you own a business, you are bound to enter into multiple contracts throughout the years. These legal documents ensure that all parties involved have their right protected and receive what was promised to them. Here are some tips for creating a solid business contract.

Be Specific

When it comes to business contracts, there is no such thing as being too specific. The more detailed you are in your contact, the fewer problems you should have. On the other hand, if you are too vague, you may face more legal issues. Think about all the risks you want to avoid.

Spell Out Payment Obligations

Money is one of the most important issues in a contract, so you have to be very detailed about this matter. It is important to specify who pays whom, when payments are due and how payments will be made. For example, if you prefer to be paid in installments, you should state that in your contract.

Get It In Writing

Even in this day and age, some business people still do handshake deals. While the law doesn’t require you to have your contracts in writing, it’s definitely in your best interest. If you just have an oral agreement, it might not be enforceable in court. Take the time to create a written agreement so that you face fewer issues in the future.

Agree on Conditions to Terminate a Contract

In some situations, it may be necessary to terminate a business contract. For example, if one party misses too many payments, the other party should be able to end the contract without breaching the agreement. Specify the circumstances to end your contract.

Hire a Business Lawyer

While there are free templates online, it is recommended to hire a business lawyer to draft your contracts. These are complicated documents, so you need someone knowledgeable to review them. A business lawyer can make sure that the contract reflects your company’s best interests and follows the specific laws in your state. If there is something in the contract that may lead to legal issues in the future, your lawyer will let you know about it. He or she can also make suggestions on how to improve your contract.

If you need assistance with your business contract, schedule a meeting with an experienced business contract lawyer, like one from Carpenter & Lewis PLLC.