Having the Right Contracts Can Save Your Business

Contracts are the backbone of small- and medium-sized companies. Strong business contracts reduce misunderstandings, establish parties’ rights and obligations, and, most importantly, provide crucial legal protections. Some novice business leaders make the mistake of neglecting contracts and assuming that handshake agreements will suffice. Unfortunately, many of these business leaders find out the hard way that powerful contracts are best way to protect their interests and avoid financial difficulties and legal disputes.

How Business Contracts Protect and Benefit Your Company

A formal written contract may seem like overkill to business leaders that are used to casual agreements. However, as your business grows, the importance of strong contracts multiplies. Contracts provide a multitude of benefits for small and medium businesses. Most importantly, contracts clearly specify each party’s rights, expectations, and obligations regarding business agreements. They reduce misunderstandings and ensure that each party is on the same page about what the agreement entails. Strong contracts reduce the risk of legal disputes in the future and provide valuable peace of mind to every party. If a dispute or breach of contract does arise, the contract will specify possible solutions and legal remedies available to the wronged party.

Creating Strong, Effective Contracts is Easier Said Than Done

Unfortunately, a poorly written contract can create a false sense of security. Ineffectual partnership agreements, employment contracts, service agreements, purchase agreements, and non-disclosure agreements put your company’s future success at risk. Weak contracts can lead to misunderstandings, wasted resources, and often, even litigation.

Many business leaders do not have the skillset or legal knowledge needed to create robust contracts. They sign contracts without reading them thoroughly or forget important provisions when drafting contracts. The best way for any business leader to ensure that contracts are being used effectively is to work with a skilled business law attorney. If your business is too small to justify in-house legal counsel, consider an outsourced general counsel. Instead of “putting out fires,” an experienced lawyer will help you prevent contractual problems before they arise. This frees you up to focus on what really matters: Growing your business.

Call Us to Learn More

Business contracts can make or break your business. At the Gierach Law Firm, we understand what it takes to draft and negotiate powerful business contracts. If you are interested in learning more about our services, including our outsourced general counsel program, YourOCG, call 630-756-1160. Our Naperville business law attorneys are ready to help.

For additional information regarding the importance of business contracts and how outsourced general counsel can meet your business needs, check out our YouTube Channel.

Sources:

AllBusiness

Forbes