Thomas Carter Business Contracts Information Sheet

Business contracts are vital to a company’s success. A well-constructed business contract serves as the foundation of a solid business relationship. From the formation of a company in the startup phase to later needs for financial contracts, purchase agreements, employment contracts, real estate contracts, and shareholder agreements, business owners encounter many contractual matters in the course of doing business. When contracts are prepared properly, they meet the requirements of the company and also address potential liabilities. Consulting a knowledgeable business contracts lawyer is prudent for drafting, negotiating, and reviewing the many types of contracts needed. They will also be able to advise on litigation matters should a dispute arise.

Preparing and Drafting Business Contracts

Basically, a business contract is simply an agreement between two or more parties promising a specific thing will happen. They are enforceable only if certain elements are included. Contracts must include an offer, a manner of acceptance, and consideration (usually a financial payment). Of critical importance is having the contract prepared by a qualified business contracts attorney who takes time to understand the client’s goal for the contract. Before signing the contract, it is necessary for business owners to have a good understanding of what rights and obligations are being established. When writing the contract, the lawyer will help the business owner make careful decisions on matters that could affect the daily operations of the company for years to come.

A strong business contract will likely contain language that mitigates risk, including professional and personal liability. That is just one of the manners in which a contract can protect business owners and their enterprises. Due to the many purposes and functions of a business contract, preparation by a skilled attorney is advised. Otherwise, the business owner may find themselves in an unfavorable situation without being aware of it.

Using contract negotiations, the attorney can make sure undesirable obligations are not included. This discourages future disputes regarding the contract. An effective business agreement will not simply meet the needs of the company, but it will help advance the goals of the company as well. Skilled business contract lawyers are able to draft effective and enforceable business contracts while providing vital legal guidance that supports business objectives.

Reviewing an Existing Business Contract

At each stage of growth, a company’s managers and owners will likely encounter many types of agreements and contracts. It is highly advisable to have an attorney look over contracts, even those currently in place, in order to verify that each party is fulfilling their obligations as expected. Every clause can be reviewed to make sure its terms comply with federal, state, and local laws.

It is best to ask your attorney to review a contract when it is first presented to you, long before finalizing and signing it. After it has been signed, it is likely more difficult to change the terms. The entire agreement needs to be examined carefully, and the agreement should communicate clearly the intentions of each party involved.

Resolving Contract Disputes

At times things do not work out as planned. If one of the involved parties fails to perform according to the terms of the contract, this is a contract breach. Serious issues can arise for a business if that happens. Whether the failure involves real estate, employees, financing, business formation, or the sale or purchase of goods/services, contract disputes can halt or hinder daily operations of the business or even possible bankruptcy.

Breach of a contract can occur when ambiguous language is used. Contract disputes can involve employee matters, collections, leases, fraud, unfair competition, misappropriation of funds, partnership disputes, and other kinds of circumstances. To reduce the impact of a contract dispute, it is vital to resolve such disputes as quickly and effectively as possible.