Orange County Business Lawyer Discusses How to Write a Business Contract
August 22, 2016
Most business owners are exceptionally wary of unnecessary expenses, especially when they are just getting a new venture off the ground. This makes them look for places to save some money, and they are absolutely right to do so. However, one item you should splurge on is having business contracts drafted by an Orange County business lawyer. Not doing so can cost you big time.
All contracts have a few basic elements in common. They must include both an offer and an acceptance. All signers must attest to their competency and capacity, and some consideration must be offered. A legal contract also requires “mutuality,” which is sometimes also referred to as a “meeting of the minds.” Additionally, although it is not necessarily required in all circumstances, it is generally considered advantageous to record the contract in writing.
This makes it sound as if contracts are basic and straightforward. The reality is that they can be. However, it is much more common for them to be extraordinarily complex. While it is sometimes possible to draft a legally binding contract that is just one page long, some contracts comprise hundreds of pages of text. The only way you can be certain that the rights and obligations of each party are clearly recited is through working with an Orange County business lawyer.
Relying on the advice of an experienced business attorney is essential because these legal professionals are well aware of the many loopholes and errors that often make their way into contracts. These mistakes can render a business contract unenforceable or even illegal. Sometimes, this leads to huge headaches for the parties, which can include litigation. More than one company has been virtually put out of business thanks to sloppy contracts that left them vulnerable.
Even the simplest of contracts must adhere to certain state and federal laws. If you become involved in a contract that contains illegal provisions, the consequences can be serious. It’s also advisable to include termination language that allows either or both parties to end the agreement under certain conditions. A mediation or arbitration clause may similarly make sense as it can help to head off future litigation.
Having all of the bases covered when it comes to contracts is extremely important. Don’t leave your company exposed in formal agreements. Ask an Orange County business lawyer for guidance and advice by calling Fitzgerald Yap Kreditor at (949) 788-8900.
