Business contracts are used every single day to help set expectations and hold parties liable for their contributions. If you’re a business owner, you likely sign many contracts as part of your normal operations. Before you ever sign on the dotted line, it’s important to have a lawyer look over your contract.
1- Assignment Rights
It’s not uncommon for business contracts to be reassigned from time to time. For example, you may have a contract with one of your vendors to receive a specific amount of product. If they run into a problem and are unable to complete the order, they may reassign it to another vendor for completion. Your contract will outline whether this is permitted or prohibited behavior depending on your specific preferences. A good business lawyer will ensure that the reassignment section is not missing from your contract.
2- Dispute Process
As with any contract, disputes are likely to arise. The contract should state how these disputes should be handled. This could include things like litigation, mediation, and even arbitration. Furthermore, it could actually specify rules for when each type of resolution may be used to settle disputes. A lawyer will be able to look over the dispute process and ensure that it’s in your best favor in case a dispute does happen at some point over the contract.
3- Breach Remedies
Another area of your contract that any great lawyer will look at is the potential remedies you have for any breaches that occur. It isn’t uncommon for breaches to happen due to issues like weather conditions or equipment failure. Most contracts will give some specific remedies that you can use to settle the breach, such as arbitration or even mediation. A lawyer will look over these remedies to ensure that you’re able to recover any potential damages you may suffer if the other party breaches the contract.
4- Duties and Rights
All good contracts will clearly outline the rights and duties of each party included. It’s imperative that this section be extremely clear as all the information in it is going to be the primary basis for any legal suit later on. This section will include things like the types of goods or services to be delivered, their quantities, prices, and delivery deadlines.
5- Parties
One particular area that can be easy to overlook because of general assumptions is the parties that are outlined. A lawyer will take the time to ensure that each party in the contract is clearly defined and the one signing on the dotted line. They will make sure that no names are mistaken in the contract and that no names are left too vague. This is necessary in the event that you need to remedy that broken contract in the future.
While business contracts might be something that you’re extremely familiar with, you don’t just want to sign them without having a lawyer look them over first. It’s easy to get caught up in the thinking that the other party will always be fulfilling their duties. A good lawyer’s job is to ensure that the contract includes all the areas above so that you can seek out legal damages in the event the other party does not fulfill their duties.