The contract is the backbone of any business relationship, so it’s important to make it strong. At Cueto Law Group, we often help our business clients draft contracts that protect their best interests. We also help those who have found themselves facing a dispute. We have seen firsthand what a difference there is between a dispute with a strong contract and the mess that gets made when there’s a dispute with a vague or otherwise problematic contract. In today’s post, we are looking at four common mistakes we’ve seen business owners make in their contracts and how you can avoid these pitfalls!
Not including a forum selection clause.
The forum selection clause is the part of the contract in which you select which jurisdiction you will litigate in if a dispute arises. This is especially important when you’re doing business across state or national borders. The way your contract is enforced in the United States may be quite different from the way it would be enforced in the UK, for example.
Not determining a path for termination.
Sometimes things don’t work out — factors could change on either side that make the contract less appealing to follow through. Does your contract specify how you or the other party should approach the possibility of a termination? Are there financial repercussions for terminating early? This should all be clearly put down in writing.
Not addressing intellectual property.
This is an important matter to address, especially in employment contracts. Will the company own the intellectual property that the employee produces on their behalf or will they maintain rights with regard to the processes, writing, and other property they create or develop?
Taking a DIY approach.
Sometimes you might feel like you can get away with using a boilerplate form contract from online. This might seem like a good way to save money and effort, but it can lead to some major problems down the road. The contract might not be enforceable in your state or it might leave out important clauses that could have benefitted you in a dispute.
Contact Cueto Law Group
At Cueto Law Group, we often work with business clients to draft new contracts and review existing ones. Taking the time to make sure your contract is solid can save you huge amounts of money and stress later, especially if a dispute arises. Contact us today to learn more about how our team can help with your contract-related needs.