Contracts are useful tools businesses utilize every day to make agreements with individuals, other companies, contractors and employees. In fact, you could say that contracts make the business world go ’round. Unfortunately, sometimes the same contracts that are meant to protect are unfairly written and are completely ineffective. To avoid these common mistakes, you may want to work with an experienced business law attorney to ensure your next contract is both effective and enforceable.
Contracts can be drafted to cover a wide range of business agreements. Some of the most common types of contracts are noncompete, nondisclosure, employment and leasing agreements, all of which are designed to protect both parties involved. In fact, the enforceability of most contracts typically hinges on how fairly it is written. If for example, a non-compete agreement is drafted that is found to impose undue hardship on an employee after their tenure has ended, a court may be reluctant to enforce it on grounds that it is too restrictive.
The fairness and enforceability factors are common problems when drafting contracts. Many times, business owners who are unfamiliar with contract requirements will draft agreements intended to protect them without knowledge that they are absolutely useless. When this happens, business owners may find themselves without the protection they once thought they had, or in the beginning stages of a lengthy and expensive litigation.
If contracts are a large part of your business, it might be wise to work with an experienced business law attorney. After all, contracts are designed to protect your business and its assets, and without the knowledge necessary to draft enforceable contracts, you may find yourself and your business vulnerable.