Strategies For Avoiding Contract Disputes
In the world of business, disputes over agreements can be an extremely common occurrence. Unfortunately, these disputes can result in individuals facing sizable liabilities and expenses. However, it is usually possible to reduce the risk of encountering serious legal fights over contracts if you are taking steps to protect yourself with and from these binding agreements.
Ensure Agreements Are Made In Writing
Individuals will often make the mistake of failing to get their agreement with the other party in writing. This can have a number of potential consequences that can make it harder to resolve disputes in the future. One of the most obvious complications will be difficulty in proving the initial terms of the agreement. If one party is confused about the verbal agreement, it could be possible for the two sides to have completely different understandings as to the agreement that is made. By getting it in writing, you can ensure that all parties are aware of the terms while also having a record of the agreement if there is a dispute in the future.
Have Any Potential Contracts Reviewed By A Corporate Lawyer
Prior to signing a contract with a distributor, supplier, or other business partners, it is imperative to have the contract professionally reviewed and evaluated by a corporate lawyer. These professionals will be able to analyze the document to ensure that the terms it outlines are the terms that were verbally agreed upon. Otherwise, you may find that there were clauses in the contract that you were not aware of, and this can fundamentally alter the agreement. Luckily, this type of document review does not take very long in most instances, and you may be able to expect your results in a day or two.
Understand The Termination Terms For The Contract
Over the course of your business's existence, the circumstances it finds itself can change, and this can lead to your need to exit or otherwise alter the agreements you have made. Individuals often assume that it will be impossible to exit out of a contract, but it is possible to include language in the contract that outlines the requirements that must be met if one party chooses to end the contract. Most often, this will involve a financial settlement that approximates the remaining value of the contract. By being thoughtful when negotiating and crafting the contract, you can include fairly friendly provisions in the event that your company must cancel or otherwise renege on the contract.
For more information, reach out to a local corporate lawyer.