Monday, 17 September 2012

The Importance of Contracts at Your Business

The Importance of Contracts at Your Business

By James Witherspoon

Without a properly structured contract, a business may not be able to function properly. Contracts outline the various responsibilities of employees, managers, stockholders, and other invested parties as well as regulate the details of each individual's position. In order to ensure that a business is founded on effective principles, all contracts must be correctly written, reviewed, and filed. This process can be simplified by working with an attorney experienced in the contract aspects of business law.

Contract Drafting

When writing up a contract, it is important to consider all aspects of the relationship and responsibilities that it is intended to outline. Often, it is a good idea to work with a legal professional who is experienced with the demands of drafting and knows how to create a clear, effective document. This will help to eliminate possible issues such as contract dispute between those involved with the contract.

Contract Review

Contracts can range from a single paragraph to hundreds of pages long. Once they are drafted, it is the responsibility of the business owner to review the documents and make needed changes to ensure that the contract serves its purpose. By going through each document with a lawyer, many business owners are able to:

  • Ensure that the company is safe from possible lawsuits pertaining to contract violations
  • Carefully place void options into each contract
  • Protect the best interests of the business
  • Maintain industry standards

Without carefully going over each and every line of a contract, a business may compromise their standards and suffer from serious legal repercussions.

Avoiding Contract Disputes

Should there be an issue involving a contract at your business, there are many complications that may arise. Avoiding any problems pertaining to this type of dispute is important. Consider having an attorney and notary present when you go over your contracts, before you present the contract for signing, and ensure that it has allowances for your company to void the relationship with the party should they fail to uphold their duties.

Similarly, employees and partners will be checking to make sure that the contracts they are signing do not compromise their rights. When drafting contracts and reviewing these documents, you must make sure to stay aware of the information as it pertains to all interested parties, not just the side that pertains to ownership. Should there be a breach of contract, the company or individual responsible party may be liable for any associated losses which can be costly for the business' reputation and finances.

Do You Need Legal Support?

Contracts have the ability to make or break a successful business relationship. Fortunately, by working with an experienced legal professional, companies may be able to create successful partnerships that encourage growth and allow for many people to remain involved with various aspects of the business. If you are interested in discussing contract drafting, review, or disputes with an attorney, contact an attorney today to make sure you are doing everything you can to protect yourself, your business, and your company's interests.

To learn more about business contracts, contact the Austin business lawyers of Slater Pugh Ltd. LLP today at 512-472-2431.

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