If your bottom line is to save money, then properly drafting and reviewing contracts should be a priority. At the Law Offices of Levi Williams, P.A., we have seen first hand how contractual relationships can make or break a business. Taking the right steps through every phase of the process can avoid litigation, saving time and money.
According to the Court Statistics Project, the average contract dispute will take a median number of 367 attorney hours to resolve. The study’s findings suggest that the median cost of litigation relating to such a disagreement is $91,000.
Numerous studies indicate that litigation among U.S. companies is on the rise. When business owners are tied up in court or buried in paperwork, the company may suffer. These cases are financially draining and time-consuming, serving as a distraction for the people who run the organization.
In order to reduce the risk and cost of litigation, business owners can do the following:
- Ensure that the contract negotiation process results in terms that the owners deem fair.
- Monitor compliance with any existing contracts.
- Evaluate any risk areas and address them as soon as possible.
An attorney should be consulted to review any agreements to ensure they are immaculate. Too often, ambiguous language or loose ends create legal problems that can cost a company tens of thousands of dollars.
When litigation appears to be a costly route, an attorney may be able to suggest other routes, such as settlement. According to the U.S. Department of Justice, the majority of civil cases result in settlement, which is often quicker and more affordable.
For more information on this topic, please visit our page on contract litigation.