Many Americans have a do-it-myself attitude. That’s one reason some of the big box home improvement stores are so successful. However, some matters are so crucial that you need someone with the skill and experience to handle the heavy lifting. Just as you would not remove your appendix, you usually should not handle your own legal issues. The costs of doing so might not always be immediately apparent, but there are hidden dangers to acting as your own business lawyer.
Costly Contract Disputes
As a business owner, you know that contracts are extremely important to your business operations. Contracts are often related to general business, sales, or employment. Generally, most companies use some or all of the following contracts:
- Franchise agreements,
- Vendor contracts,
- Sales contracts with clients,
- Bills of sale and purchase orders,
- Partnership agreements,
- Joint-venture agreements,
- Non-disclosure agreements,
- Non-competes,
- Commercial loans,
- Employment contracts,
- Commercial leases, and
- Equipment rentals.
When contracts are poorly written, you and your business can suffer. In fact, you might find that a contract has unintended and unpleasant consequences. It’s easy to sign away rights without even realizing it, especially if the rest of the contract seems a good deal.
A client or vendor might find loopholes that allow them to take advantage or simply not fulfill their obligations.
While some legal disputes can be quickly settled, others settle into litigation that can disrupt your business for years. Money saved by using online contracts could be eclipsed by court costs, attorney’s fees, and judgments.
We strongly recommend having your business lawyer or corporate counsel draft or at least review contracts before you sign them. Contracts are definitely one of the legal issues that should not be do-it-yourself.
Defaulting on Deadlines for Your Legal issues
It might seem that being served with a lawsuit is the worst-case scenario.
But what can be even worse is failing to respond to the lawsuit within the time limit given. That’s because if you don’t answer a lawsuit, the plaintiff might obtain a default judgment against you. Generally, it’s difficult to defend against a default judgment unless you have a compelling reason for doing so. Just missing a simple deadline can be costly in business litigation.
Deadlines for other legal issues are important also. For example, compliance with government rules and regulations is critical. Failing to meet deadlines can sometimes lead to your business being shut down, at least temporarily. However, your legal counsel can help you submit paperwork on time to avoid penalties and fines.
Lost Opportunities – and Cases
As mentioned above, you can lose a lawsuit by missing deadlines. But there are reasons that handling your own legal issues can get you into hot water.
It’s possible to fully understand the implications of a contract or other legal document. A misunderstanding could mean that you have lost out on something that could have helped your business.
An agreement – let’s say a franchise agreement – could seem like a bad deal. On your own, you might decide to pass on it. However, a business lawyer might be able to explain the provisions that concern you, so you feel free to proceed or at least feel more comfortable declining.
There Are Risks Associated with Handling Your Own Legal Issues
Laws are often confusing, and reading the fine print doesn’t always help. It’s all too easy to make preventable mistakes. We look forward to assisting with your legal work.
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.