Could it really be possible that your company can save money by hiring a lawyer? You be the judge.
It’s estimated that between one-third and one-half of all U.S. small businesses are involved in litigation at least once every year. If your company falls into that category and you could avoid costly litigation and courtroom time through sound and efficient legal work, wouldn’t it be worth considering?
Relationships are the lifeblood of any business. Many business relationships are defined through contractual arrangements. Contracts are a tool to enforce commitments between business partners. When a company fails to keep its end of the bargain, a breach of contract occurs, and the other company can suffer significant financial losses.
Every vaguely defined term, missing comma or ambiguous language about each party’s roles and responsibilities can lead to misunderstandings, missed deadlines and new litigation. That’s why it’s important – and perhaps financially prudent – that you hire a business contracts lawyer to carefully review every aspect of a contract before you sign it.
What’s the legal definition of a contract?
A contract is a promise or set of promises between parties producing mutual obligations that are enforceable under the law. If a promise is broken by one of the parties, the injured party can sue the offending party to recover its damages. However, not all agreements between parties are deemed “legally binding” contracts.
For a contract to be legally binding, it must contain five important elements.
- An Offer, where one party proposes a plan to take action (e.g., sell a product) in exchange for some agreed-upon terms (e.g., buying the product at a certain price).
- Acceptance, where the party receiving the offer agrees to the terms of the offer.
- Consideration, where each party agrees to provide something of value that spurs the other party to enter into the agreement and fulfill the contract’s obligations.
- Agreement, when all parties agree to the terms of the contract.
- Competency, when all contractual parties have the legal capacity to enter into the contract.
Why do you need a contract lawyer?
Most formal contracts contain legal jargon that must be vetted and thoroughly understood before moving forward. Experienced contract attorneys can clarify the meaning of each phrase, identify the hidden impact of seemingly harmless language and draft new contract language, if necessary.
Doesn’t it make sense to have a legal expert review your contracts before you sign them? A business lawyer can help defend your company’s rights and likely reduce the time your company spends in court each year.