How can you reduce the risk a business contract causes problems?

As a business owner, you know how hard it is to win contracts, engage new clients or find a supplier you want to work with. Therefore, having spent all that time, effort and money doing so, it would be a shame to spoil it by writing an unenforceable contract.A well-written business contract is key to the success of any business relationship. If you opt for a standard agreement instead of customizing the document to the specific situation, you increase the risk your relationship fails and that you have problems when it does.

Courts can overturn a poorly written contract

If the other party breaches your agreement, the court may let them off if the contract contains these errors:

• It was too heavily to your advantage: The contract needs to be fair to both parties. Think about if you were in the other party’s situation, and they offered you the same arrangement you are offering them. If you would not sign it in their position, you should not expect them to either.
• It breaks the law: Contracts are a legal agreement, so you cannot agree to anything illegal.
• It does not specify things clearly enough: Making things ambiguous, hoping that you can interpret them to your benefit if you need to may go against you in the end. A judge will consider that if you could not be clear about your expectations, the other party had no chance of knowing what you expected.

There is a lot at stake when you write a business contract. Having help to get it right will ensure the agreement serves you as you need it to.