Business contracts are an essential part of doing business. A business owner will usually have multiple active contracts at any given time. Depending on the circumstances, these foundational documents can be functional or problematic for a growing enterprise. The good news is that there are ways to help ensure that your agreements support your business goals and operations. By knowing what not to do, you can help protect your enterprise today and in the future. Here are 5 business contract mistakes and how to avoid them:
1. Not Getting Your Agreement in Writing
It comes as a surprise to some people that not all contracts have to be in writing. Under Florida law, some agreements can be made verbally. However, specific types of contracts must be written and signed by the parties to be enforceable.
Generally, it is always best to get business agreements in writing. When both parties can see what they are agreeing to, it can help them avoid misunderstandings in the future. If you expect to enter into a contract with another party, make sure it’s written.
2. Using Vague or Ambiguous Terms
Getting your contract in writing is the first step. The next is making sure you use the right language. When contracts contain vague and ambiguous terms, they may be considered unenforceable. Therefore, you want your contract terms to be clear and specific. Otherwise, you risk you or the other party committing a breach. Unclear terms can also disrupt operations and create difficulties for you in the long term.
3. Not Anticipating Possible Issues
A significant part of preparing a business contract involves planning for unforeseen events. Therefore, when drafting your agreement, you should consider everything that could happen during its execution. For instance, suppose you have a vendor agreement for another party to supply your restaurant with vegetables. In that instance, you may want to include clauses and terms that relate to substitution and delivery issues. Your contract should be built around its intended purpose. However, it should also include possible events that may alter its performance.
4. Leaving Important Information Out of the Agreement
Sometimes it is not what is in an agreement that can create problems but rather what is left out. Your contract should be comprehensive, and you will want to ensure you know what to include. Having to amend your agreement later to add important language may be highly problematic. When developing your contract, be sure you know all of the necessary terms.
5. Not Working with an Experienced Florida Business Attorney
One of the biggest mistakes you can make when developing and entering into a business contract is not working with an experienced business attorney. Your business lawyer knows what terms should and should not be in your agreement. They also know how to craft the document to support your enterprise and protect your interests.
You have worked hard to build your business, and it’s important to do everything you can to ensure it’s protected. Your attorney understands the law and knows how to help you safeguard your business now and in the future.
Contact a Florida Business Attorney Today
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with commercial leasing, business, and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.