Top Contract Mistakes that Connecticut Business Owners Should Avoid
If you are currently a Connecticut business owner or soon will be, you probably already know that business contracts are an integral part of a successful business. Whether you are creating a partnership agreement, non-compete agreement, financing agreement, bill of sale, employment contract, or another type of business contract, you need to ensure that the contract is effective and enforceable. Seemingly minor mistakes can lead to major misunderstandings and contract disputes. This is one reason that it is always a good idea to have business contracts reviewed by a qualified business law attorney.
Assuming that A Verbal Contract Will Suffice
In an ideal world, we would not need business contracts. A person could simply be trusted to keep his or her promise. Unfortunately, this is not how the business world works. Informal agreements and casual contracts are ineffective and extremely difficult to enforce. You have probably poured a great deal of time and energy into your business. You need to know for certain that your business is protected if a partner, vendor, or contractor fails to keep their end of the bargain. Well-written, clear, enforceable contracts are the only way to protect your business in the event that a party breaches the terms of a business agreement.
Relying on Internet Templates or Ready-Made Contract Forms
A quick Internet search will reveal dozens of contracts and agreement forms. Using a fill-in-the-blank contract form may seem like an easy shortcut, but doing so can have disastrous results. One-size-fits-all legal forms often omit important elements and are too vague to be enforceable. An experienced lawyer can help you understand what type of contract best suits your intentions and create a custom contract built with your unique needs in mind. He or she will also be familiar with state laws and local regulations that may influence specific contract requirements.
Using Ambiguous Language or “Legalese”
Your contract should clearly state the terms and conditions of the contract in a way that is understandable by all parties. It should also include information about what constitutes a breach of the contract and a termination clause that explains how a party can terminate the business relationship. Some business owners assume that adding overly complicated language makes a contract appear more impressive. However, legalese and excessively complex language only make it more likely that a contract will be misunderstood.
Contact a Greenwich Business Contract Lawyer
Business contracts can be complex, especially if you are a first-time business owner. The skilled Norwalk business law attorneys at the Law Offices of Peter V. Lathouris, LLC, have seen firsthand how a poorly written business contract can damage an otherwise successful business. We offer dependable legal guidance regarding contract review and drafting, contract disputes, and more. Schedule a free initial consultation by calling us today.