According to the U.S. Small Business Administration, federal agencies spent a record-breaking $145.7 billion on small business contracts in 2020. An increase of $13 billion from the previous year.
This means a business contract is a business-critical document for entrepreneurs and business owners.
If you’re like most business people, the idea of writing one stresses you out because it involves tedious legal jargon that makes your head spin. So to make things easier on yourself, we’ve put together some key tips to help ensure when making a business contract, you’re making watertight business deals.
1. Hire a Commercial Contract Lawyer
A commercial contract is a legally complicated business document. It requires the expertise of someone who understands property law inside and out.
There are also certain clauses to keep in mind when writing business contracts, such as indemnification provisions, guarantees, and other default remedies that can leave you financially devastated should things ever go south.
Even the tiniest business contracts are legally binding, which means you need to hire an experienced business contract lawyer.
The best business contract lawyers will also be able to review your business documents. They will then provide their expert advice on what should or shouldn’t be in there.
So, do your business a favor and hire an experienced business contract lawyer well-versed in commercial law.
Visit www.venerable.law to find a suitable business contract lawyer.
2. Make Sure the Business Contract Is Clear
The business contract needs to be clear and easy to understand by all parties. If it’s not, there will inevitably be confusion. And that will lead to misunderstandings that can haunt you later.
To make sure your business contracts are crystal clear, keep them as simple as possible while still covering every point in the arrangement. This includes what each party expects from one another, along with any rules or procedures surrounding the performance of this arrangement.
Also, use straightforward language instead of legal jargon whenever you can. Complex wording makes business contracts confusing for everyone involved.
3. Get the Contract Signed by All Parties
This business contract signing is the final step in your business arrangement. You need to get all parties to sign off on it before you start executing. If they refuse, then don’t proceed with whatever business deal was agreed upon.
A business contract that all parties don’t sign is a business arrangement you can’t enforce. So, if the other party doesn’t want to sign off, it probably means there was either a misunderstanding or misrepresentation of facts.
In this case, renegotiate and get them to agree to what should be included in the business deal.
Make a Watertight Business Contract Today
Business contracts are a fact of life for entrepreneurs. They should be treated with the utmost respect and care to ensure you’re making a watertight business agreement. And that means agreements that can’t just be walked away from without facing serious financial repercussions.
To make sure that you’re entering a business contract that is watertight, hire an experienced commercial contract lawyer.
We hope this guide will help you create a business contract. If so, please share it with your friends and business colleagues on social media or by email.