Contracts - An Overview

Contracts are an integral component of all business ventures. Whether you are a small, family-owned enterprise or a large-scale operation, the foundation of your organization rests upon its contracts. It is extremely important that you seek the advice of a knowledgeable and experienced contract attorney to help you with your business contract needs. A lawyer can assist you with all of your contract needs.

When drafting contracts for a new or existing enterprise, it is necessary to predict future situations your business may encounter. Quality business contracts take into consideration a multitude of factors that may not be obvious to you as a business owner. Whether you are opening a sole proprietorship or entering into a partnership, or embarking on a new endeavor in the course of an established business, you should seek the advice of a trained contract attorney to help you protect your rights and your business.

Contract Defined

A contract is an agreement between two or more parties creating obligations that are enforceable or otherwise recognizable at law.

Common Types of Business Contracts

Listed below is a sampling of the various types of contracts that are often negotiated and drafted when developing or expanding a business venture:

• Shareholder agreements
• Partnership agreements
• Noncompetition and confidentiality agreements
• Distributorship agreements
• Licensing agreements

Drafting Business Contracts

Contract drafting can be seen as an art, a skill that is honed through time and experience. In addition to consulting with an experienced attorney, there are some simple techniques that may help you when developing contracts for your business.

• Consider your audience. Who will be reading and possibly accepting the contract? Do you need contracts for employees, business professionals or the average consumer?
• Consider your employees. Is there a need to protect your business' intellectual property? Will you require confidentiality agreements? Will you be offering your employees stock options or other benefits?
• Consider your business entity. Are you entering into a partnership? If so, what will happen to the business if your partner divorces or chooses to exit the business? If you are a sole proprietor, what is the future of your business if something should happen to you?
• Consider the goods and services your business provides. Do you produce goods that require a warranty? Will you be contracting with outside vendors? Where will the majority of the goods be manufactured or services be provided?

All of the above are important questions to take into consideration when developing contracts for your business. Unfortunately, there is no set list of contracts needed for every business; therefore, it is important to discuss your individual contract needs with an experienced attorney.

Contract Litigation

When parties form a valid contract, they must perform in accordance with their agreement. If one or more party does not comply with the terms of the contract, the other party may sue for breach of contract and seek appropriate remedies for the breach. A breach of contract can occur in a multitude of situations:

• Nonperformance by vendors
• Shareholder disputes
• Breach of corporate confidentiality agreements
• Nonpayment or collection disputes

To avoid litigation involving contracts it is important to draft quality and legally sound documents. Additionally, it is wise to have any contracts drafted by other parties reviewed by a legal professional before signing.

Conclusion

The involvement of an experienced contract lawyer on your behalf is important for skilled contract formation and negotiation. Contact an attorney with your contract questions or concerns.

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DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.

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