What can I do to have strong Business Agreements and Contracts?

By The Law Office of Yoel Molina.
 
1.   Put it in writing: Oral agreements are frequently valid and enforceable, but they are frequently challenging to enforce in court (and occasionally aren't enforceable at all). Even though the law doesn't demand it, most agreements in the business sector should be in writing. Because a written agreement clearly outlines each party's rights and obligations in the event of uncertainty or disagreement, it is less dangerous than an oral agreement.
 
2. Maintain simplicity: Unlike what most lawyers believe, a contract must contain legalese in order to be enforceable. Instead, write a brief, concise sentences with straightforward, numbered paragraph titles that inform the reader of what is to come.
 
3. Deal with the proper individual: Spending time discussing a business deal with a junior employee whose superior must approve everything is a waste of time. If you notice this taking place, respectfully but firmly ask to speak with the person in authority. Make certain the individual you are negotiating with has the power to bind the company and has a stake in seeing that it upholds its end of the bargain. Ask if you're unsure of their identity. In a smaller company, it might be one of the proprietors; in a bigger company, it might be the CEO or COO.
 
4. Accurately identify each party: You'd be astonished at how frequently and how crucially this is misunderstood by businesspeople. To make it obvious who is accountable for carrying out the contract's responsibilities, you must mention the parties' full legal names. For instance, if a company is set up as an LLC or a corporation, refer to it by its full legal name, which should include the suffixes Inc. or LLC, rather than the names of the parties to the contract.
 
5. Clearly state every aspect: The agreement's body should explicitly state each party's obligations and rights. Don't leave anything out; if anything is discussed verbally and agreed upon but isn't included in the contract, it will be extremely difficult to enforce. With a few notable exceptions, judges in the field of contract law are only permitted to interpret a contract using its "four corners," as opposed to what the parties say to one another. You can always write a brief amendment if you forget to include something. Alternatively, if you haven't already done so, you can handwrite the modification into the contract. If both parties initial the amendment, it is incorporated into the agreement.
 
6. Outline your financial obligations: Indicate who is responsible for paying whom, when payments must be made, and the terms of payment. Money is frequently a contentious topic, as you can expect, thus this section should be quite thorough. Include dates, hours, and conditions whether you want to pay in installments or only when the task is finished to your satisfaction. Think about providing the payment method as well. Others may prefer a cashier's check or even cash, while some may be content with a company check or business credit card.
 
7. Agree on the conditions under which the contract will end: It is sensible to specify the conditions under which the parties may end the agreement. For instance, if one party consistently misses crucial deadlines, The opposite party should be allowed to end the agreement without facing legal repercussions for breaking (violating) the terms.
 
8. Choose a method for resolving disagreements: What you and the other party will do if something goes wrong should be specified in your contract. Instead of going to court, which requires a significant amount of time and money, you might decide that you will resolve your issue through arbitration or mediation.
 
9. Decide which state law will apply to the deal: If you and the other party are in separate states, you should only select one of your state's laws to govern the contract in order to prevent later legal squabbles. Additionally, you might want to mention the location of the mediation and arbitration, or can file a lawsuit in accordance with the contract. If a disagreement does arise, this will make things easier for you.
 
10. Maintain its privacy: Sensitive company information is frequently made available to the other business when one business employs another to provide a service. Your contract should contain a mutual pledge that each party will treat as completely confidential any business information it comes into contact with while carrying out the terms of the agreement.
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If you have any questions about this article or similar matters, please contact our office, the Law Office of Yoel Molina, P.A., at fd@molawoffice.com or 305-548-5020, option 1