Business Law- The Importance of Well-Written Contracts



The main reason for putting a contract together is to ensure that either party involved in the process is protected. It is therefore of great importance that the contract be well written and has no loopholes to reduce liability if something should go wrong.

Our Contract Lawyers will offer a few tips and a bit of advice on the things that a water tight contract should contain.

Always do the first draft of the contract yourself. That way and you will be able to include the things that are most important to you in the contract.

The contract need not be unduly complex. It is best to use terms that you and the other party will understand. It is much better if the contract is clear to make it more enforceable and reduce liability. If the contract is not very clear, this can be used against you should something go awry.

You also have to make sure that all the right business names are utilized when the contract is being drafted. This basically means if you are doing business with another company you ought to ensure that you make use of the business name in the contract instead of the individual that you are conducting business with on behalf of the company. A contract lawyer can get it done in a jiffy.

The most important thing that you have to keep in mind when putting the contract together is to make it as detailed as possible. Ensure that what is expected to happen is properly outlined in the contract. All of the obligations and rights of both parties are to be included and make note of anything that may have been agreed on verbally and include it in the written contract.

Should there be the need to make any changes to the contract you will have to include that as a separate amendment or addendum and attach it to the contract as it makes no sense to redo the contract in its entirety. Be sure that these amendments are initialed by all the persons involved. The payment details must be outlined explicitly along with the method of payment, when the payment is expected and what the recourse for late payment will be. Clauses that outline how the contract can be terminated must also be included. Steps to take should a dispute arise must be included as well to reduce liability. Have a contract lawyer review it to ensure all is included.

 

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