People have always told you that you have a great mind for business, but what do they mean by that? Do they mean that you carefully weigh risks and opportunity costs before you decide to commit money for a project? Do they mean that you are unusually observant about people’s buying preferences and therefore can easily predict which products or marketing strategies will be a success with your target market? Do they mean that you are good at long-term planning and at avoiding getting discouraged when it takes time for your business to become profitable? Even if you have all of these talents, you can still leave your business vulnerable to major setbacks if you, on behalf of your company, are party to contracts that are not in your favor. A small business lawyer like Stephen Welle can help you draft contracts that give your business the greatest possible protection.
What Kinds of Contracts Does Your Business Need?
All businesses use contracts, but which contracts they use depends on the line of work in which the business engages. These are some of the most common types of contract agreements that business owners use.
Almost all contracts, no matter their subject matter, contain language about how to resolve disputes that relate to the terms of the contract. How to word these parts of the contract can have a big influence as far as putting your business on sound footing in a court of law.
Why Contracts Matter
If you start doing business with a supplier or independent contractor, and you do not have a written agreement, then it is one person’s word against another’s in a court of law. The supplier or worker can say that you promised to pay all sorts of money that you did not promise to pay, and it is up to the judge’s discretion to determine who is more credible. Likewise, simply having a written contract does not automatically offer absolute protection from legal problems. It is important to word your contract so that there are not any loopholes. You want the language in the contract to be flexible enough for it to apply to a variety of situations. (If you do not do this, you will end up with a contract that is many pages long.)
If it sounds like writing a contract that is advantageous to your business requires specialized skill, it does. Therefore, the best thing you can do is have an attorney write your contract, or else write a first draft by yourself and then have an attorney review it.
Contact O’Keeffe O’Brien Lyson Foss About Business Contracts
Well-written contracts are essential to a successful business; writing them is a separate skill from successfully managing a business. Contact O’Keeffe O’Brien Lyson Foss in Fargo, North Dakota or call 701-235-8000 or 877-235-8002 to draft or review your business contracts.