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Do your contracts contain these problem areas?

On Behalf of | Oct 17, 2022 | Contracts

Form contracts have become the standard for many businesses, especially if you are just up and running. While a form agreement may prove helpful, you must proceed cautiously. A problem in one contract means a potential for that same one is high across the board.

Familiarize yourself with common problem areas in contracts and compare them to what you have on the page.

Is your language too general?

You may have created a form contract and left some finer points out. You may have thought that doing it this way would help, but basic and vague contract language creates significant issues. Remember that you are doing business with others, and their intent and reading of the language may not fit yours. If a contract is too vague or general, both sides may make an argument for contradictory readings.

Does the contract have an expiration date?

When you get into business with someone else, you may believe the relationship will last forever. That is not always the case. When you create a contract with anyone, make sure it has an expiration or review date attached. This allows the parties to either renew the terms, renegotiate or terminate the contract.

Do you address a breach?

You may not want to consider that the other party to the contract may not follow through on the terms. To protect yourself, however, you need to set out the ramifications of this scenario. For instance, if the other side does not make things right or try and correct the breach, you should have the right to pursue legal avenues to force it or receive compensation.

Understanding some basic contract parameters may go a long way to keeping your business safe.