We cannot overestimate the importance of business contracts. As a business owner, you may use contracts to memorialize written agreements to lay out everyone’s responsibilities and rights. If questions arise about “who does what,” your legally-binding contracts should clear things up. But ambiguous terms and out-of-date provisions may lead to legal disagreements with the other parties. Litigation can follow. To make sure you and your company are protected, now is the time to review your business contracts.
Are Your Business Contracts Older Than a Year?
Start by considering when your contracts were written. If it has been a year or more, laws and business conditions may affect performance of the contract.
Including the right language in your contracts could protect your business from current and future concerns.
Did You Write Your Agreements Without Legal Counsel?
If so, you may have missed important provisions. For example, mandatory arbitration language may or may not be the best option for your business. Some provisions may relate to how to legally terminate the contract while minimizing the chances you will get sued. Indemnification language also could protect you from future business litigation.
If this all sounds complicated, it is. We cannot stress enough that you should have an attorney draft or review all your business contracts.
Has Your Business Changed Since the Contract Was Written
Your contracts should include how to handle situations where you may no longer be able to complete the contract. The COVID-19 shutdown rocked the business world to the point where many companies may find their business contracts no longer work.
Talk to an attorney about revising your contracts based on your company’s current capabilities.
Have Any Laws Related to Your Business Contracts Changed?
To truly answer this question, you need to consult with an experienced Florida business lawyer.
Contracts and the laws behind them are so complicated and so important to your business that periodic reviews are crucial. Laws and legal precedents that shift may create unintended vulnerabilities.
Europe’s General Data Protection Regulation (GDPR) is just one example of how laws can radically alter the way you do business. Every so often, consumer protection regulations change in ways that might change the way you do business. Periodic contract reviews can help prevent your company from noncompliance.
Call to Discuss Reviewing Your Business Contracts
It is not easy to understand the legal terminology or the effects of most contracts. Always discuss contracts with your corporate counsel or a business attorney before signing one yourself.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with 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.