Sometimes, business owners are inclined to sign contracts without reviewing or understanding the governing terms, but people should never get complacent about legally binding documents, and they certainly shouldn’t attempt to draft contracts themselves.
Technically, anyone can write a contract. The law doesn’t require much more than an offer, acceptance of the offer, and two legally competent people who agree to the terms and sign off on the documents.
However, it’s crucial to remember that people write contracts to memorialize the terms of a business arrangement and specify what happens in case things go wrong. A hastily drafted contract is much less effective at upholding your rights and interests than a contract drafted by a seasoned attorney.
People who draft their own commercial contracts or attempt to use DIY templates often end up with ambiguous terms that leave room for interpretation. Contracts lacking specificity can be difficult or even impossible to enforce in a court, potentially leaving you without legal recourse when you need it most.
There are many benefits to having a business attorney prepare your company’s contracts.
First, a skilled business attorney can ensure your contracts contain all of the terms you need, some of which you may not know you need. Additionally, a lawyer can ensure you fully understand the legal ramifications of the terms in your contracts, as many people sign contracts without fully comprehending all the terms and conditions. An attorney can also help you secure more favorable terms, warn you about a bad deal, help you negotiate a better one, and offer you guidance about when you should consider walking away.
An attorney can also prevent potentially costly loopholes buried in the fine print of documents by reviewing those documents before you sign them. Some parties intentionally include onerous terms in contracts as a way to exploit the other side. Hiring an attorney to review a contract can help you avoid loopholes that can and will come back to haunt you.
Contracts are only useful if they’re enforceable and drafted in accordance with your best interests. A contract that is ambiguous, confusing, or written incorrectly may not be worth the paper it’s written on.
Business owners can also find themselves in legal hot water if they misunderstand the terms and inadvertently breach the contract.
We strongly recommend you do not write your own business contracts or sign agreements before an experienced attorney can review them in full. The team at Douglass & Runger is here to help.
