When it comes down to it, business is all about contracts. While business would run smoother if everyone carried out their duties with just a verbal agreement, contracts are ultimately the best way to hold partners, clients, and service providers accountable. As a business owner, understand how a bad contract can impact your business and how you can fix a contract that does not serve your needs.
- Your Contract Is Too Optimistic
New business owners are often at risk of creating contracts that are too optimistic about the future. When you’re talking with an enthusiastic and apparently reliable service provider, it may seem unnecessary to include language about what happens if they miss a deadline, produce low-quality work, or disappear completely. Hope for the best in business, but plan for the worst. Make sure your contract covers what will happen in every possible scenario.
- It Doesn’t Specify Timelines
Vague timelines are dangerous for business owners. For example, requiring companies to provide deliverables “as soon as possible” or “as agreed upon by both parties” is far too open-ended to protect you if the other party decides that your deliverables aren’t their top priority. Include clear dates in every contract and penalties for missing those dates.
- It Features Vague Language
Just as general timelines can damage your business, so can vague language. Vague language regarding what tasks or projects someone is responsible for, the quality of work expected, and payment timelines or methods can leave your business without enough cash flow, without the deliverables it needs to grow, or with completely unusable work. While clear contract language may seem overly specific, this is exactly what is needed. There should be no gray area in any of your business contracts.
- You Don’t Know What You’re Signing
There’s no doubt about it—business contracts make for dry reading. If you’ve entered into business contracts before, you may feel confident that you know what to expect from a contract and trust that the other party has written a fair contract. Never sign anything until you know exactly what it says and what it means for you. This is one reason that it’s essential to have an experienced business attorney; they know exactly what to look for in a business contract and can ensure that your best interests are protected.
Are your contracts in order? If you’re not sure, you need Trembly Law Firm. Schedule your consultation with us now for personalized business law solutions.