A solid business contract can protect your business. On the other hand, a poorly written contract can undermine your business. A skilled contract attorney can save you stress and money in crafting a business contract that protects your interest.
Why you should have an attorney draft your contracts.
- To clearly state the terms of your agreement
- To include terms favorable to you:
- Forum selection (make sure any lawsuits are conducted in your home town)
- Choice of law (require application of the state law most favorable to you)
- Award of fees and costs (not the general rule in the U.S. unless called for in an agreement or granted under a statute)
- Specify alternate dispute resolution such as arbitration to hold down costs in the event of a dispute
- To prevent lawsuits or minimize their cost
For you to enter into a binding contract, there needs to be:
- An offer
- Acceptance of that offer by the party to whom it is made
- Consideration – that is, something of value given by each side for what they are getting from the other
The contract generally needn’t be in writing – oral contracts can be perfectly binding. However with an oral contract, you can have problems proving the terms of the contract in the event of a dispute.
Because of this, you should enter into written agreements that clearly state the terms. A seasoned lawyer can provide the guidance you need to craft clear, binding agreements.
An unclear contract can result in a lawsuit that can cost you many thousands of dollars, not to mention the emotional cost and lost time.