Contract litigation can be costly, time-consuming and damaging to both parties involved. You can reduce the chance it happens to you by taking extra care when drawing up agreements.
Avoid these errors when writing a contract
To draft a contract that will hold up in court, you need to keep it within certain boundaries. Otherwise, your agreement could count for nothing. Here are some things to consider:
- Make it legal: If you want the law to uphold an agreement, do not include anything which breaks the law. Running to the courts because the other party has not kept their side of the bargain could land you in further legal trouble.
- Avoid pressuring someone into signing: Do not use the information you have about the other party’s extra-marital affair to get them to sign the deal.
- Ensure people know what they are doing when signing: If someone is not in full control of their mental capacities when they sign a contract, it might not hold up. While wining and dining is a popular way to convince people to do a deal, be sure they do not drink so much they do not remember signing.
- Ensure the right person signs it: Each company only has a few people legally able to sign contracts on the company’s behalf. The signature of a smooth-talking owner’s son may count for nothing when his dad finds out.
- Make it fair: If you can’t believe the other party agreed to the terms that you suggested, then a judge might not believe it either. Contracts must not be too one-sided.
Well-written contracts are essential in many aspects of business. They lay solid foundations for your success and protect you from harm.