Naperville Business Lawyer Discusses the Importance of Wording in Business Contracts

contracts, Naperville business lawyersIf you are like most people, you were probably told at a fairly young age that you should carefully read everything you sign, especially contracts. If you are a business owner, it is likely that you now understand why: the wording of a contract matters. More than that, the way in which a contract is worded can change everything. Just a single misunderstood phrase can make or break a litigation claim.

As an experienced business law attorney, I help clients with contract concerns every day. I understand the dangers of poor contract wording and how problems can arise in unexpected ways.

Ways Poor Wording Can Jeopardize Your Company

Contracts are used for almost any and every business transaction and agreement, from those forged with suppliers, to those signed by clients or customers, and right on down to the ones your employees sign. In reality, poor verbiage in a contract can jeopardize your company in pretty much every way imaginable. It can lead to litigation for not meeting consumer expectations. It can result in losses with suppliers. It can even lead to wrongful termination lawsuits or other employment litigation matters.

Key Elements to Include in Contracts

Because every contract is different, and each will have a different purpose, it is important to speak with an experienced legal consultant before issuing a contract to an employee, partner, supplier, distributor, client, or customer. This can help to ensure that the verbiage is protective to your company and that you have not missed any key elements for your company’s need or industry. Examples of these elements may include, but are not limited to:

  • Concise verbiage to reduce confusion and misunderstanding;
  • Definitions of words or terms used in the contract;
  • Service/product warranties, exclusions, and limitations;
  • Liability limitations and/or exclusions;
  • Information on how disputes may be resolved;
  • Expiry of any expressed guarantees or warranties;
  • Clause releasing you from a breach of contract in the event of unforeseen circumstances; and
  • Information on pricing, penalties, interest, payments, or other service/product details.

Negotiating Contracts with Suppliers and/or Distributors

No matter who drafts your business contracts, it is critical that you have the contract reviewed by your attorney before signing. This can help ensure your company’s best interest is protected. Your attorney will be able to identify potential areas of concern and will help you propose amendments to the contract if necessary.

Whether you need assistance with reviewing a contract or drafting one for clients, consumers, employees, or others, our Naperville business contract attorneys can help. Dedicated and experienced, we protect your company’s interest and seek to ensure your business thrives. Schedule your consultation The Gierach Law Firm to learn more. Call 630-756-1160 today.

 

Sources:

Forbes

Chron Small Business