A contract is a legally binding document that gives you both legal rights and obligations. However, you are usually bound by the exact language used in the contract. Here are some common mistakes that people make when agreeing to a business contract.
One of the biggest errors is not getting everything down in writing right away. While an oral contract can be enforceable by a court, you do not want to be in a position where you would need to ask a judge to rule on something not in writing. A written contract will give you more certainty and protection.
Some people think that they can use a template contract for their agreement, and this is a huge error. A template may not be able to accurately account for your own situation. Trying to force a square peg into a round hole can create ambiguities, and the contract may not reflect what you really wanted.
Another error is not having an attorney review a contract before you sign it. Although you are not required to have an attorney, it will certainly help you in the long run. Once you sign a contract, you are obligated to perform, regardless of whether you had a lawyer when you signed it.
Finally, some people leave out a termination clause that specifies the circumstances under which the contractual arrangement can be ended. One or both parties should have the right to terminate the contract for non-performance, and the agreement should clearly spell out when this can happen.
Contact a Lynnwood Business Law Attorney Today
The best way to avoid these mistakes is to have an attorney draft or review key business agreements, and we can help. Call Bountiful Law today at 425.517.3051 or send us a message online to speak with an attorney.