Tips for Creating Effective Business Contracts

 Posted on October 17, 2022 in Business and Commercial Law

When you operate any business, there will inevitably be some point at which you are going to need to sign a contract that will be inherent to protecting your legal rights and also ensuring another party fulfills their obligations.

Business and commercial law contracts can help minimize risks and can be critical to ensuring the long-term health of a company. People need to keep in mind certain aspects of contracts to be confident that they are taking all of the steps necessary to formulate the contract that will be most beneficial to them. A legally enforceable contract must have an offer, an acceptance, mutual consideration, legal parties, and a legal purpose.

Make Sure You Are Dealing With The Right Person

When you are negotiating the terms of a contract with a lower-level employee who has to get approval for every decision, you may be wasting your time. Ask to speak to a person who can be in charge of making decisions themselves so you can be confident that you are working toward finalizing an agreement. An owner is probably the best bet for a small business, but larger businesses may have chief operating officers.

Get Everything In Writing

An oral agreement may very well be legal and binding, but it can also be near impossible to prove to the satisfaction of a court. Even when the law does not require a contract to be in writing, you will still want yours to be so because it will allow every condition of a contract to be clearly spelled out.

Identify All Parties Correctly

Make sure that all parties to a contract are correctly named. This means that when a company itself is responsible, then name that company exactly as it is legally named, including any Inc. or LLC suffix. The people signing the agreement may not necessarily be the parties who will be responsible for fulfilling the contract.

Determine The State Law Governing The Contract

When the two parties entering a contract reside in different states, then you will need to pick one state for the laws governing the contract. You should be sure to speak to a Hill County business and commercial law attorney about which state laws will best suit your needs.

Specify Terms of Payment

Chances are that your contract is going to require some kind of exchange of money, and you will want to be sure that the contract specifically states how payments are to be made. In addition to payment deadlines, also note the methods of payment that will be acceptable. You should also state who payments are made to and any other pertinent payment details.

Contact a Tarrant County Business and Commercial Law Lawyer

If you need assistance drafting business contracts for your company, you will want to be sure that you have experienced legal representation working with you. The Hood County business law attorneys at Cain & Kiel Law represent businesses of all sizes in various kinds of commercial litigation and transactional matters.

Our firm will work closely with you throughout your business dealings and help ensure that you are able to take all of the necessary steps to protect your company. You can call 817-645-1717 or contact us online to schedule an initial consultation so we can discuss your case with you in person.

Source:

https://www.forbes.com/sites/allbusiness/2016/02/03/10-essential-contracts-for-small-and-growing-businesses/?sh=5c3c790d1aa3

https://www.utsa.edu/bco/resources/contract-law-101.html