Drafting and Reviewing Contracts
The best time to consult with an attorney about a contract is before you have agreed to anything whatsoever in writing. You are generally making a long-term commitment with their decision that not only affects you but may affect your family and employees, whether current or future.
Considering this is often a long-term legal obligation, it makes sense that a professional would rely upon an attorney experienced in contracts to review the agreement and assist in drafting or negotiating any needed changes. That attorney will also help clarify language and explain limitations that may be in the contract. There may be many factors that determine whether a business contract is good or not for either the business or other parties.
These common mistakes can often occur:
- Not consulting legal counsel or waiting too long to do so
- Relying on verbal promises, not the written contract
- Disregarding vague contract language
- Discounting covenants not to compete
- Dismissing specific terms and conditions listed for employment or ownership
- Accepting one-sided termination clauses
- Not understanding compensation and bonus details
The contract provisions and language used can control obligations, responsibilities, and rights in a business transaction.
A couple of easy rules that should be followed when it comes to contracts include: review any proposed contract carefully so you know what you are getting into, consult an experienced attorney to catch what you may have missed and make sure all the details you were expecting are in writing and language is clear.