As the owner of a business in Glen Carbon, IL, you should know that business contracts make up the backbone of your business success. Sales-related contracts like bills of sale and purchase orders as well as employee contracts like employee agreements and confidentiality agreements are some common types of contracts you may deal with. With any kind of contract that your business uses, those contracts must be well written, so they are enforceable by law.
Potential Mistakes
There are many templates for contracts floating around, especially on the internet. It’s important to know, however, that there is no one size fits all contract that will fit every aspect of your business. If you want the most optimal contract, you will need to draft it from your unique situation. Here are some mistakes that many businesses make when creating their contracts.
The Contract is Too Ambiguous
The most important part of any contract is that the terms are well detailed, and they make a scene. Important terms like payment need to be perfectly defined on the contract. Each party needs to be able to understand the conditions of the contract equally, so all responsibilities and rights are understood.
Contract Termination Clauses
This kind of clause needs to be on the contract as it explains how a party will leave the agreement. It’s better to plan for the worst-case scenarios like these than not have a plan ready when relationships go sour between both parties. The terms need to describe the ways a party can terminate the relationship with the business, the period before the contract is current, and the consequences of terminating the contract itself.
Difficult to Understand Language
Trying to overinflated the terminology used in the contract with complex and hard-to-understand language is an easy way to make your contract nearly impossible to follow. Make sure that your contract has language that both parties are going to be able to understand.
Litigation Provisions
Any good business contract needs to have a section that describes how any disputes between both parties will be handled. You may decide to have disputes handled in court for example. The contract needs to accurately describe how all disputes will be handled.
If you need any assistance or more advice on writing a solid business contract, give our team over at Action Law Center a call today! Our office is located in Glen Carbon, IL and we assist the residents of the Metro East Area.
