DON’T MAKE THESE CONTRACT MISTAKES WITH YOUR BUSINESS
You Don’t Want to Make
KEEP YOUR BUSINESS SAFE AND YOUR LIFE SANE.
1. Not Putting Your Agreement in Writing
You have to put your agreement in writing. This is a must. As a business owner, you have a lot going on…all the time. It’s easy to forget every detail that you may have agreed to. There are a few contracts that are required to be in writing, for example a copyright assignment or a real estate transaction. But in most cases, contracts are not required to be in writing to be valid. As an attorney, I’ve had numerous clients come to me after things have gone awry, and the first thing I ask for is a copy of the contract.
2. Not Making Sure That Your Indemnity Provision is Mutual
As an attorney, I always make sure that my client is protected. If the other party is drafting the contract, the other party will typically make sure that the indemnity provision protects them. It’s my job to make sure that my client has the same protection.
3. Not Being Clear About Needed Formats and Processes
If there are specific formats that you need or processes that must be used, these should definitely be included in the agreement. For example, if someone is providing a document to you, you would want to state whether the document will be provided in MS format and whether it will be delivered by email of via dropbox. So you must think about specific needs that you may have and include them in the agreement.
4. Not Having Someone Review the Agreement
Always make sure you have someone review the agreement for you. It’s usually better to have an attorney or another professional who has expertise in your subject matter and your business. They can usually catch small things and sometimes big things that may cause you a bit of heartache if they are not taken care of.
5. Not Planning for the End of the Business Relationship
Finally, always plan just as hard for the end of the relationship as you do for the start of the relationship. Most of the time, we are so eager to get started that we don’t think about how and when the relationship will end. So consider dealbreakers that might force you to walk away and also the normal ending of the relationship too.