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About business contracts

| Feb 28, 2019 | Contracts |

Louisiana entrepreneurs should fully understand all the business contracts they are expected to sign when entering into contractual relationships. It’s wise to strongly consider the type of business relationship — whether it’s with a family member or some other entity. One should also make sure that the business contract includes terms that protect their interests.

When writing or entering a business contract, it is important to consider if the contract addresses the situations that could arise and whether contingency plans will be put in place. It is also necessary to determine if the provisions are too vague. If the contract terms or provisions are not clear enough, disputes could arise.

One important practice to follow regarding business contracts is to make sure that everything is in writing. There should be written proof of not only the agreement but also all of the specific terms to which each party must adhere. While oral agreements are a part of the small business culture, it can be very difficult to enforce such agreements. Furthermore, it is not unusual for people to misunderstand or misremember the terms to which they agreed.

The language that’s used in the business contract is also an important factor to keep in mind. Plain English is ideal, especially for contracts used by small businesses. Both parties need to completely understand what they are signing and exactly what each provision means.

An attorney who practices commercial law may work to protect the rights and interests of a client who enters into business contracts with other parties. Legal counsel could negotiate favorable terms and review business contracts for clarity. If there are contract disputes, the attorney may use litigation to advocate on behalf of the client.