If you are a business owner, understanding how to create a solid business contract is crucial in ensuring your business is protected. With little exception, the best way to ensure this is to hire a New Orleans corporate litigation attorney. However, we understand that for some small business interactions, this is simply not feasible. Our legal team has created a list of five tips you should consider when creating a business contract.
1. Write it Down
It is true verbal agreements are legally binding; however enforcing a legal agreement made between two parties can be difficult, especially if there were no other witnesses to substantiate your claims. If you are entering a business agreement, make sure you get everything in writing. When you have a written agreement, it clearly spells out the responsibilities of each party to uphold the agreement, which means less confusion and disagreement in the future.
2. Be Detailed
The content of your business contract should be as detailed as possible. If you make a verbal agreement in addition to the contract, make sure you create an appendage to the contract detailing the verbal agreement made and signed by both parties. The best contracts leave no stone unturned and are extremely thorough in their explanations of duties and responsibilities.
3. Discuss How You Plan to End the Contract
Establishing an agreed-upon set of circumstances in which either party can terminate the contract without being legally responsible for breaching or violating the contract is important. Discuss this with any parties involved in signing the contract, so you both can have a clear picture for which circumstances should lead to termination.
4. Identify Payment Plans
If your contract involves one party paying another, outline the conditions for making payments and any payment obligations. If your contract is designed for obligations of work completed by a specific time and payment within a certain window, indicate both of those in your contract.
5. Confidentiality is Key
As a final note, your contract should contain a piece of material indicating that the agreement shall remain confidential.
Creating a solid business contact can be difficult without the help of a skilled New Orleans commercial transaction attorney. At Lowe, Stein, Hoffman, Allweiss & Hauver L.L.P., our experienced legal team can assist you with all your business contract needs.
Call 504.517.8160 to schedule your consultation today.