Within a contract, everything has to be written in legally binding terms. Contract drafting lawyer Andrew Weisblatt is one of the experienced lawyers that know how to word things correctly, so the legally binding contract will stand up in court. Businesses and individuals need a contract drawn up at some point in their lives to protect themselves and their assets.
A contract is almost like a receipt showing proof of an agreement that is binding with legal terms. The words are listed not to create extra costs, burdens, or liability on the client. The contract attorney also handles litigation cases dealing with a breach of contract, which is a violation of the written agreement between the parties involved.
Valuable Terms in a Business Contract
To have the perfect contract drawn, legal terms must be present in the contract. These are the basic terms used for the ideal contract and must never get left out or taken out of context:
- “Confidentiality agreements”
- “Dispute resolution guidelines“
- “Indemnity clauses”
- “Limitations on liability”
- “Payments and payment schedules, including late fees and interest”
- “Rights to which each party is entitled”
- “Duties and obligations of each party”
Reasons for Having a Contract
Different circumstances come up where you need a contract drawn up. The primary purpose is to protect yourself legally. These are times when you will need a contract attorney to draw up a contract:
- Starting a new business;
- Buying or selling a business;
- Dissolve an existing business;
- Bringing on an investor or partner;
- Modifying an agreement with a vendor, manufacturer, or distributor;
- Hiring a new employee.
Different Types of Contracts
There are different types of contracts for different purposes and businesses. It is essential to realize there is no one for all contracts. Each contract caters to each of the client’s needs. Listed below are the many types of contracts that need to be drawn up at the time of a business deal or closure:
- Business contract review;
- Agreement to sell the business;
- Nondisclosure agreement;
- Warranties or limited warranties;
- Purchase orders;
- Bill of sale;
- Noncompete agreement;
- Employment contracts;
- Lease agreements;
- Manufacturing contracts;
- Vendor agreements;
- Partnership contracts;
- Franchise agreements;
- Dissolution agreements;
- Purchase and sale agreements.
The Importance of a Perfectly Drawn Contract
When sitting down with the contract attorney, it is critical that you deliver all of the information about your company and the other party’s information. The attorney will research every detail and input all the data gathered into the contract. Some people find drawn-up contracts on the internet for specific purposes, but some of the contracts will not cover the full agreements. The attorney will better know the business laws and understand the loopholes that can save the business owner and the business in the long run. It can hurt the case if something is left out or not worded correctly.
Negotiation is another critical factor. The attorney will know how to negotiate the best deal for the contract. After the client meets with the attorney, the attorney will know and understand the arrangements. In the negotiation process, they can save the business owner time and money and prevent loss of sales or business.
Once the contract is written, both parties will review the contract with the attorney because another loophole in the law states that all parties fully understand the agreement and what is written. All parties will sign the contract, and witnesses will be present to sign a formal agreement. Everyone will obtain a copy of the contract agreement, and the attorney will file their copy in the client’s file. Should something happen down the road where a breach is met, the attorney will have the ammunition needed to take the case to court.
Breach of Contracts
This violation is where the proper legal terms and words are necessary. If there is a breach of contract, the attorney will begin the litigation process. Another option may be to cancel the contract. It is at the business owner’s discretion with the advice of the attorney which route to take.
If the case goes to court, the basis of the contract is what the final say is, and the attorney must prove the following:
- The agreement was enforceable;
- The other party deliberately violated the agreement by ignoring the terms of the agreement or making it impossible for the business to conduct their obligations;
- If there were any losses due to the breach of contract.
Damages Awarded Due to Breach of Contract
Once again, the wording and legal terms are everything to determine a win for the case and the damages awarded. Attorney fees and court cost is covered in the damages awarded. The courts will rule in favor of putting the business back on target the way it was before the breach. It is called compensatory damages, also known as actual damages, which restores the cost of lost profits due to the violation. Included in this is:
- General damages: Payback for the direct loss of profits;
- Special damages: These are for conditions that are not predictable. It covers the loss from the breach from special circumstances, and the attorney must prove the defendant had full knowledge of the special circumstances when the contract was signed.
Don’t Let the Word Attorneys Scare Your Business Away
The entire point of contracts and legal advice is to protect not only you but also the other person. When business deals come up, the first thing you should always do is talk to your attorney. Informing this to the other party may scare them away. It is best to tell them at the beginning of the deal instead of waiting until the deal is closing. This way, everything is out in the open.