Important Things to Know About Contract Law for Small Businesses?

When it comes to small business and contract law, there are certain protocols to follow. You don’t want to leave anything to chance. A well written contract is very important. It should spell out everything in details and leave nothing to interpretation. It should be signed by all parties and that will make it legally binding. Sadly, verbal agreements and handshakes aren’t going to be enough to hold up in court.

There are times though where an expressed contract is in place. There are core terms in place but not written down. While such a contract can be tough to enforce, it can be done. It all depends on the variables that are involved. For example, if you are offering storage space to a party for a given amount of money and they don’t pay, you may have recourse. You may not have a contract but the fact that their inventory is in your space says that some type of agreement was made between you and that party.

There may be intent on the table, but until a contract is signed, it isn’t legal. This can be frustrating if your small business has poured time and resources into that proposal. Any time that a contract is written, both parties should have a say in how it will be worded. Don’t assume that the other party will interpret things the same way that you did. That is where conflict can turn into a long court battle which is also expensive.

The contact can’t be considered binding unless all the involved parties have signed it. All parties have to assume a duty to perform their agreed upon obligations in the contract. Many small business contracts are between your business and one other party. However, there are times when there will be a third party in the mix. They must also sign that contract for it to be binding in a court of law.

Be willing to bend and to negotiate when it comes to contacts and your small business. You may bend on a given issue in order to get the contract signed. If you don’t bend, then the other party may walk away.

It is a common mistake that you can put anything into a contract you want, and it is binding if both parties sign in. There are some limitations that you need to be aware of. For example, if any part of that contract contradicts with public policy, then it can void the entire contract. There may be commercial codes in place that apply, and they must be followed by all involved in business activities in that area.

If you feel that there is an issue between you and another party, try to resolve it on your own. Try to open the lines of communication. If that doesn’t work, it may be time to ask an attorney to step into the picture. It may be a good idea for you to retain an attorney for business purposes from the start. They can review and revise any business contracts before the parties sign them. This can be a wonderful way to prevent problems. Should any issues arise, then the attorney can guide you through it.