Everything You Need To Know About Contracts

September 8, 2021
Andrew Cove

Contracts are the foundation of any working relationship. They help set expectations, establish practices and provisions, and get everyone on the same page. A good contract will explain what each party involved expects from the other, and what they will get in return.

The key to a good contract is making sure it is legally enforceable. This is one of the reasons that contracts are best when written instead of just verbally agreed upon. It allows both parties to continue to reference the contract in the future, and it can be enforced in court if need be. This is why signing a contract is also essential: it is an agreement you are legally entering into.

Accordingly, it is important to confirm that everything in a contract is both legally sound and in your best interests before signing it. You should have any contract you are writing, sending out, or being asked to sign reviewed by a business lawyer before execution. We have seen plenty of contracts fall apart because of vague or generic language, and ultimately fail the involved parties when they need it most.

Here is some further reading about contracts, based on topics we’ve covered in the past:

Are Verbal Contracts Enforceable?

Here’s what we had to say: “Enforcing a verbal contract can be quite difficult. Because everything regarding the contract was spoken and not written, it can be challenging to get both parties to agree on what was said and promised. This disagreement about ‘evidence’ of the contract turns the whole situation into a he-said-she-said debate.” Read more by clicking on the title!

Every Business Should Have These 5 Types of Contract

Here’s what we wrote about leases, one of the five types of contracts every business should have: “Leases are among the most common – and most important – contracts used in business. You can use lease agreements to rent out a property for your business or lease equipment you will need to perform specific tasks. To make sure a lease works in your favor, triple-check specific elements like the lease term, the permitted uses of the space, your landlord’s obligations, and your ability to sublet the lease.” Read the other four types of business contract at the link!

4 Tips For Better Business Contracts

Here’s our advice about including worst-case-scenario provisions in your contracts: “We recommend thinking through some worst-case scenarios and making sure your contract would protect you in those cases. Does it specify what justifies contract termination? Does it define payment obligations? Does it have terms to be applied if the world throws an unexpected curveball (like a pandemic, for instance)?” Click the title to read the other three tips!

Get the Contract Help You Need

You don’t want to deal with contracts without the help of a business lawyer. At Cove Law, we’ve seen too many good businesses go to court over bad contracts to encourage it anymore. To get the strong contract help you need, contact Cove Law today! We are here to help!

Andrew Cove
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