It’s not strange to see business people prepare their own contracts and sign without having a lawyer review them and interpret their legal implications. They may think they’re eliminating an unnecessary expense but sometimes, this could lead to costly court settlements and a big waste of time.
With an experienced business lawyer assisting you in drafting your contracts, you not only avoid the pitfall described above but also potentially save more money. If you’re not quite sure how this is possible, here are some insights to guide you.
Easy To Enforce Contract
A contract you put together yourself using generic forms from the internet and other online resources may not be enforceable. This means you may have left out key provisions such as what will happen if the other party doesn’t keep its end of the agreement. Also, the contract template you adopted may not be up to date with current laws or not suited to the nature of your business. Moreover, you might not be aware that your contract contains provisions that are not applicable in your state.
Or you may have dispensed with a written contract altogether and are quite content with verbal agreements sealed with a handshake. This is even worse than a contract that you put together from scratch as a verbal contract is typically hard to enforce and may not be valid for some transactions.
On the other hand, a contract prepared by a business lawyer contains the key clauses that make it enforceable in case the other party violates the agreement. With this, you won’t be at the losing end.
Right Contract
You may feel like all you need is a non-solicitation contract for your business, not knowing you also need a non-disclosure and non-compete contract. So, if an employee sets up a similar business using your trade secrets, what do you do? With what contract do you seek recourse?
You see now that having the wrong or an incomplete contract is almost the same as not having a proper arrangement set up in the first place. You can avoid this by hiring a business lawyer who understands the nature of your business and provides you with the contracts you need for your business to run smoothly.
Better Contract Terms
In many cases, you wouldn’t be the one preparing a contract for the other party to sign. Sometimes, it’s the other party that prepares the contract and this is where it becomes tricky. As the contract may include provisions that work against you, you should have a lawyer review the contract and revise it, if needed, to ensure that the terms are reasonable.
But if the contract is coming from your end, your lawyer can draft it in such a way that the terms are more favorable to you, hence allowing you to benefit more from the contract.
Contract In Sync With The Law
Like every other thing on earth, laws change, too. Keeping your contracts in sync with the law reduces the chances of having loopholes that leave your business at a disadvantage. With a business lawyer, your contracts will be updated to reflect changes in the law.
Aside from that, you’d rarely have tax issues, which are some of the costs that eat into a business. Hiring an attorney ensures your taxes are handled well and your contractual obligations are properly executed.
Clear Contract
Signing a contract without having a lawyer review it first can be a blurry venture to undertake. You may misunderstand and thus misinterpret the meaning of some clauses in the contract, thereby leading to either low expectations or high expectations from the deal.
A business lawyer can help you understand what you can reasonably expect from the deal and advise you if it would be beneficial for you to enter into such an agreement.
Complete Contract
Three basic elements make a contract legally binding: offer, acceptance, and consideration. The other ingredients that need to be present include the capacity to enter into an agreement, certainty of terms, and free acceptance of the parties.
Getting a lawyer involved in the drafting and reviewing process ensures that the necessary elements are in place, making the contracts legally binding thus shielding you from risks.
Suitable Employment Contract
Getting a lawyer to guide you in drafting the contract between you and your employees will help you avoid labor issues such as the misclassification of employees. The lawyer can also educate you on laws regarding employment, so you don’t break a state or federal law.
Conclusion
Hiring a business lawyer to draft and review your contracts is like applying the ‘prevention is better than cure’ rule. By avoiding being entangled in costly lawsuits, you save two immensely valuable resources—time and money.
