Are Your Contracts Adequately Protecting Your Business?
The contracts you have with employees, distributors and other businesses are the foundation for your ability to successfully do business in a profitable manner. Operating on handshake agreements is a recipe for disaster. The best way to protect your legal and financial interests is to have thorough contracts that make your relationships and obligations clear so you can have peace of mind about your legal standing and ability to operate.
What Should Your Contract Include?
A contract is only as strong as its imagination. It is crucial to make sure your contract not only covers likely scenarios but also has a structure in place to deal with unforeseen circumstances. Failing to think ahead can result in loopholes that are easy for an unscrupulous party to take advantage of.
Your contracts must be written with legal language that reflects the conditions your business operates in. For example, a contract for a business that operates via invoice or purchase order will be different than a contract drafted for a business that operates via the Uniform Commercial Code (UCC).
Contracts should provide transparency and clarity around terms such as:
- The compensation or payment provisions
- The legal and financial responsibilities of each party
- Requirements for dissolving the contractual relationship
- Definition of breach and methods for resolving disputes
- Damages that must be paid in the event of a breach
These are crucial issues that must be adequately addressed whether your contract is a purchase contract, a lease, a licensing agreement or a franchise agreement. Cutting corners on contracts can lead to long-term disaster for your business and – depending on how your business is structured – your personal interests.
Protect Your Interests With Sound Contracts
At Hantzes & Associates, we offer a wide range of legal services to businesses throughout Northern Virginia and the Washington, D.C., metro area. We can help you with all aspects of contract law, including drafting, negotiating and enforcing contracts. Call 703-378-5000 to schedule a consultation.