4 Things to Know Before Making a Business Contract

Preparing and entering into a business contract is a serious and risky project. It should not happen unless there has been a lot of thought given to it. Once the decision to do so is made, then there are several guideline and rules to go buy and adhere to. Here are four important things to know before making a business contract.

Retain the Services of a Qualified, Respected General Practice Attorney

A lawyer specializing in general practice will have the knowledge necessary to assist in writing a contract that is critical to the success of a business. The first step in successfully preparing business contracts is learning how to properly write them, avoid civil and criminal penalties, along with the desire to achieve success. It is entirely possible to face civil lawsuits and criminal charges for improperly written contracts. Enrolling in some online criminal justice programs is a good way to learn how to avoid breaking criminal laws during contract writing. Law classes typically demand a lot of writing for assignments, so they are good practices for a career like this. 

Make Sure the Contract Is Heavy With Details

When preparing the contract, it should be written in a language everyone understands and is clear on. Preparing an easy to understand contract with hardly any room for interpretation should be the goal of the contract writer. For example, if payment is needed at the beginning of the month, then be specific and give an actual number for the date of payment. Avoid oral agreements at all costs too because they are not specific, easy to debate and some jurisdictions do not even accept oral contracts. Get every tiny detail in writing that leaves no room for interpretation by using the simplest legal language possible. 

Always Include Payment Details and Stipulations

It is important to be specific about payment methods and how they are to be made. Special provisions are fine as long as they are written properly and adhere to the other important guidelines. The information about payment goes back to the importance of details. Payment requirements, payment methods and dates are an absolute must. Legal disputes over money happens quite often, so being specific about payments adds a protective layer. 

Make Sure the Contract Reflects State Laws in All Aspects

It is acceptable to cite laws in contracts, but it is necessary the laws being stipulated belong to a specific state's legislation. Those state laws will govern the contract and any disputes. Failure to abide by this very simple rule may result in an expensive legal argument if a problem arises. The court will have to take the time necessary to decide which jurisdiction's laws will be responsible for the dispute. Make sure both parties decide at the very beginning of the contract about which state the contract will be filed under.

It is important to know these things before creating or entering into a business contract. While these tips are paramount, there are many other things to look into and keep in mind before making such a huge decision. If the contract is developed correctly, then a business really has a chance at achieving success and a purpose.

About the author

Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing about business and finance and spending time with her dog, Max. Information credited to Fone Angels, smart phone and tablet repairs.

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