By Hampton & Pigott
Posted on 9-8-2021
Whether you have an established business or you are starting a new business venture, protecting your assets, rights, and interests are of utmost importance. That’s where having parties sign contract agreements will work in your favor. Regardless of if you are hiring a new employee or entering a vendor relationship, the quality of your contract agreement can make or break your business. That’s why we wanted to share a few common mistakes that business owners make when creating contracts so that you can avoid them in your business dealings.
The first mistake you can make is to fail to create and have parties sign a written contract at all. Oral contracts can be binding, but they can also be difficult to enforce. They also allow more room for misunderstandings. A written contract will outline a business relationship and responsibilities in detail and can give everyone a document to later reference if need be. It also makes it easier to protect your rights and assets.
It should go without saying that you should never sign a binding document that you do not fully understand. Take the time to read the agreement. If you do not understand a certain term, ask questions. Pay close attention to all terms and conditions because as was mentioned, a good contract is all about the details.
Another common mistake is to copy and paste a general contract template from the internet. Some may be tempted by the ease of this option, but a pre-made template will rarely be enough. Because it is not made specifically to your business, it is common to run into issues later. Having an agreement made specifically for your business and situation is going to benefit you in the long run.
Contract agreements can be complicated. Don’t leave yourself vulnerable. Contact our attorneys for help. We can help create a contract that is made for your objectives. Or we can help you review a contract you are considering and make sure that you understand all terms and potentially negotiate terms if needed.