Whether you are starting a new business or working hard to grow your current business, you may need a business contract lawyer to help you stay legal, enforce your business agreements, and avoid litigation whenever possible.
The first step is ensuring that you have effective business contracts in place. Then, periodically, you will want to review your business contracts to ensure that they are accomplishing your goals.
In this article, we will discuss why having effective business contracts in place and conducting reviews of your existing contracts are critical to the success of any business, including:
- How effective business contracts can help you to avoid unnecessary litigation,
- How your business contracts can help you to win your case when litigation is unavoidable,
- The most common types of business contracts for Myrtle Beach businesses, and
- Why you may need your attorney to review your existing business contracts.
The Importance of Effective Business Contracts
The most important reason for having effective business contracts in place is to avoid litigation – the last thing a small business needs is to get involved in protracted litigation that could have been avoided if your contracts were clearer about what was expected from each party.
When litigation is unavoidable, a clear, well-written contract that is tailored to your specific transactions could make the difference between summary judgment in your favor or a long, drawn-out court battle ending in a trial and possible appeals.
When your business contracts clearly identify each party’s rights and obligations, you are much less likely to end up in a lawsuit for breach of contract – if there is a dispute, the answer should be in the contract!
Clear contract terms that are tailored to your specific situation will prevent either side from “forgetting” the terms of your agreement or misinterpreting what they were required to do or pay, which will shut down many potential lawsuits before they happen.
Specific contract provisions like a liquidated damages amount in the event of a breach, or an arbitration clause, may also help to avoid or minimize litigation when disputes arise.
Breach of Contract
When the other party breaches their contract provisions, a well-drafted contract may help to win your case faster, minimizing unnecessary litigation with:
- Clearly stated responsibilities for each side,
- Liquidated damages in the event of a breach,
- Arbitration clauses, or
- Summary judgment in your favor when the contract provisions are clear.
How Your Business Contract Lawyer Can Help
Your Myrtle Beach business contracts attorney can help you to keep your business running smoothly, avoid litigation, or win your breach of contract claims when litigation is unavoidable by 1) negotiating and drafting your business contracts and 2) reviewing your existing business contracts to determine whether favorable provisions and terms are in place.
Negotiating and Drafting Business Contracts
Your business contract attorney in Myrtle Beach can help by including (or removing when appropriate) provisions in your contracts like:
- Clear statements of each party’s rights and responsibilities,
- Liquidated damages in the event of a breach,
- Clear notice provisions when appropriate,
- Arbitration clauses to settle disputes out of court,
- Special warranties,
- Termination rights,
- Force Majeure clauses,
- Confidentiality clauses, and
- Limitations of liability.
If you are starting a new business, ensuring that you have well-drafted business agreements in place should be an item on your checklist. Then, as your business grows and you enter into new agreements, your attorney can help you by negotiating contract terms and drafting your contracts to ensure there are provisions that protect you and your company.
You should call your business law firm before entering any important business contracts including:
- Vendor agreements,
- Sales or purchase agreements,
- Real estate purchases,
- Franchise agreements,
- Equipment rentals,
- Real estate rentals, or
- Agreements related to the formation of a new business.
Reviewing Your Existing Business Contracts
When should you have a business contract lawyer review your existing contracts?
- When some time has passed since you entered the contracts,
- Periodically, to ensure you are keeping up with changes in the law, or
- Now, if your contracts were not negotiated and drafted by an attorney who was working for you.
If you are accepting and signing form contracts presented to you by vendors or business associates or entering business transactions without contracts, your company is at risk.
The other business or individual you are doing business with probably has an attorney who is drafting their contracts for them – which means the agreements may be tailored to benefit the other party and to protect the other party at your expense…
A review of all existing contracts could:
- Identify problem contracts that need to be renegotiated,
- Identify key notice requirements, warranties, termination rights, force majeure clauses, or other terms that could affect your rights,
- Identify contract provisions that may be changed by new or revised government rules and regulations,
- Identify key provisions that protect you and your business that are missing from your contracts, and
- Identify whether you or another party has breached any contract terms and advise you as to how to proceed to resolve any potential issues.
Questions About Business Contracts?
At Coastal Law, our business contract lawyers file lawsuits, defend lawsuits, and do everything within our power to protect the financial interests of our business clients. We also help our clients to avoid litigation whenever possible…
If you are a SC business owner, call Coastal Law now at (843) 488-5000 or contact us through our website for a free consultation about how to protect your business.