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A business contract is integral to the success of a company. Carefully constructed business contracts can lay the foundation for strong business relationships. From contracts establishing the initial formation of a company to financial agreements, purchasing agreements, employment contracts, shareholder agreements and real estate contracts, a business owner may encounter a range of contractual matters while conducting regular business activities. When the contract is properly prepared, it will meet the needs of the business while also addressing potential liabilities. A skilled business contracts attorney can draft, negotiate, and review a wide range of business contracts while also providing litigation services in the event of a dispute.
Drafting and Preparing Business Contracts
A business contract is basically an agreement between parties that promises something will happen. It is enforceable only when it contains certain elements. The contract must contain an offer, some form of acceptance, and establish the items being considered. It is critical to have a business contract prepared by an experienced business contracts lawyer who will take the time to gain a comprehensive understanding of your objectives. The attorney can ensure the contract terms are clearly stated. It is important for the business owner to understand the rights and obligation of the contract before signing it. While drafting the agreement, the attorney will assist the business owner in making thoughtful decisions which may affect the company’s daily operations for many years into the future.
A successful business contract will include language for mitigating risk, including both personal liability and professional liability. This is just one way a contract can be structured to protect a company and its owner. Because a business contract has so many purposes, it is important for the contract to be prepared by an experienced attorney. If not, a business owner might unknowingly enter into an unfavorable situation.
Negotiating a Business Contract
A contract may come in many forms, but most often the accepted form is a written document. For any business agreement, it is important for the terms to be worked out before it is signed. Both parties may want certain terms or conditions to be altered. A skilled attorney can advocate for a company’s interests and look for opportunities that benefit the client. In many cases, the attorney can negotiate for better terms which are favorable to the company and/or the business owner. Perhaps there are alternatives that have not yet been considered. Because attorneys are skilled negotiators, it may be possible that a creative solution or proposal would better fit the needs of the business.
Through the contract negotiation process, an attorney can ensure unexpected obligations are not present. This can discourage and prevent contractual disputes in the future. A successful business contract not only meets the needs of a company, but advances its goals. A skilled business contract attorney can create successful, enforceable business agreements and provide necessary legal guidance to support the business’ objectives.
Reviewing Existing Business Contracts
In every stage of a business, a company’s owners and managers are likely to encounter many diverse contracts and agreements. It is best for an attorney to look over the contract, even if it is currently in place, to confirm all parties are performing as expected. Each clause can be examined to ensure the terms are current with local, state and federal laws. Sometimes, a vendor may be using a contract which includes basic “boilerplate” language that does not protect a company’s interests.
When a company is first presented with a contract, it is a good idea to have an attorney review the document before adding a signature to finalize it. Once it is signed, it may be more difficult to alter the terms. The full scope of the agreement should be scrutinized and the contract must clearly communicate the intentions of all parties. This can help reduce the risk and liability of a contract dispute. For example, a contract may detail a certain type of work that is to be completed before a certain dollar amount is paid. The contract will specify the type of work, duration, payment and other details. A poorly drafted contract, if not corrected during the review process, may result in a party failing to complete the contract’s terms.
Resolving Contract Disputes
Sometimes things do not go as planned. When either party to a contract fails to fulfill the specified terms, it is considered a contract breach. This can cause serious issues for a business. Whether the matter involves employees, real estate, business formation, financing, or the purchase or sale of goods and services, a contract dispute may interrupt daily business operations or even lead a company to bankruptcy.
A breach of contract may occur if the contract included ambiguous language. In this case, a contract breach may have been hidden for a long time if each party’s obligations were unclear. A contract dispute may involve an employee dispute, collections, fraud, lease disputes, unfair competition, partnership disputes, misappropriation of funds, and many other circumstances. During a contract dispute, the company may endure economic damages. To minimize the impact on a business, it is important to resolve contract disputes as efficiently and effectively as possible. A knowledgeable business litigation attorney can help to identify solutions for both minor and complex contract disputes.
Contact an Experienced Business Contract Attorney
With decades of experience assisting clients in a diverse range of contractual matters, The Law Offices of Robert J. Spitz drafts, prepares, negotiates and reviews business contracts for commercial clients throughout California. Call (909) 395-
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