Four Tips for Better Business Contracts

Contracts are the building blocks of any business. Or maybe a better analogy is that they’re the glue that holds your business together. Whichever way you phrase it, contracts are extremely important. They create a foundation and mutual understanding for your business’s relationships with employees, clients, and even other businesses. This means poorly worded contracts can leave you vulnerable. That’s why it is so essential to have strong and clear contracts. In today’s blog post, we’re sharing four tips for improving your business’s contracts.

  1. Work with an attorney.

First and foremost, you should work with an attorney to draft and review your business’s contracts. Business attorneys (like the team at Cove Law) know how to structure contracts and how to use the correct verbiage to keep you protected. We can help you avoid mistakes that could prevent your contract from being legally enforceable. If you have contracts that you’re using already, you should review them with an attorney at least once a year to make sure they keep up and stay relevant as your business’s operations evolve over time.

  1. Attention to detail. 

Whether or not you correct a tiny error can make or break your contract’s enforceability. A misspelled name or having information in the wrong place can defeat the entire purpose of the document. If things don’t go as planned and someone wants to get out of their contract, these seemingly minor issues can come to light and cause you an immense amount of time, money, and energy. 

  1. Clarity.

When it comes to a contract, ambiguity is not your friend! These documents are all about making sure both parties entering into a business relationship have a clear understanding of what they can expect from each other. We’ve seen many contracts in which businesses misuse legal jargon, causing the intent of certain clauses to be disastrously unclear. We’ve also seen contracts that use boilerplate language that simply don’t give enough detail about the reality of the intended agreement. An attorney can help you avoid these pitfalls.

  1. Consider worst-case scenarios.

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)? A business lawyer can help you identify and tackle possible challenges you may face down the road that you might not have foreseen on your own. 

Contact Cove Law

The Cove Law team can help you with your business’s legal needs, including contract review and drafting. Contact us today to discuss your business’s unique needs. You can reach us at (954) 921-1121.

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