J. Muir & Associates understands the importance of having solid contracts in place to protect our client’s interests. However, we also know that many business owners make common mistakes when it comes to their contracts, which can have serious consequences down the line.
Here are the top two mistakes many businesses make with their contracts.
Mistake 1: Copying Contracts From the Internet
The first mistake that we often see is when business owners copy contracts off the internet without fully understanding the terms and conditions that are included.
While it may be tempting to save time and money by using a premade contract template, this can be a risky move. The terms in these contracts may not be applicable to your specific situation and may not adequately protect your interests.
For example, an arbitration clause may be beneficial for a large company with significant resources, but for a smaller company, it may not be the best option. Similarly, contracts found on the internet may not comply with the laws of your state or may not be enforceable in court.
It is essential to work with a Miami business contract lawyer to draft a contract that is tailored to your business needs and complies with the laws of your state.
Mistake 2: Not Including an Attorney Fee Provision
The second mistake that we see frequently is when business owners do not include an attorney fee provision in their contracts. This is a significant mistake because it can discourage the winning party from pursuing legal action if there is a dispute. Without an attorney fee provision, even if you win the case, you may not be able to recover the legal fees you incurred during the litigation process.
This can be a significant financial burden, as legal fees can easily reach tens of thousands of dollars. By including an attorney fee provision, the winning party can recover their legal fees, making it more feasible to pursue legal action in the event of a dispute.
FAQ: Common Business Contract Mistakes
What are some other common mistakes that business owners make with their contracts?
Some other common mistakes include not clearly defining the obligations of each party, not specifying the timeframe for performance, and not including provisions for termination or cancellation of the contract.
Can a contract be amended or modified after it has been signed?
Yes, a contract can be amended or modified after it has been signed, but it must be done through a written agreement between the parties involved. Any changes to the contract should be clearly stated and agreed upon by all parties involved.
Do I need a lawyer to review my contract?
While it is not legally required to have a lawyer review your contract, it is highly recommended. An experienced business attorney can help ensure that your contract protects your interests and complies with the laws of your state.
Contact J. Muir & Associates Today
In conclusion, contracts are a crucial component of any business, and it is essential to take the time to ensure that they are drafted correctly. Copying contracts off the Internet and not including an attorney fee provision are two of the most common mistakes made by business owners. These mistakes can be costly and can have serious consequences down the line.
At J. Muir & Associates, we have experience and knowledge in drafting and reviewing contracts for businesses of all sizes. Contact us today to learn how we can help you protect your business interests and avoid these common mistakes.
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