Running your own business has many incentives, such as you get to work on your own terms and you are entitled to the biggest portion of earned profits. Nonetheless, it is a huge responsibility and the tiniest of mistakes can result in heavy losses. If you don’t tread carefully, others will take advantage of your naivety or let you take the fall when a disaster is underway. There are many legal ways to protect your business from fraudsters, and drafting foolproof contracts is the most straight forward approach. Transactional Law Attorney in Tallahassee, FL, discloses all the secrets to creating safe and reliable agreements with your business contacts:
1. Get everything in writing
An agreement that is in writing with signatures of all parties involved is all-binding. People can go back on their word, but it is hard to contest something embossed on paper. Verbal agreements are not reliable or enforceable, thus they should be discouraged during business transactions. A written contract is easy to refer to if we want to review information regarding a particular issue. It prevents unnecessary conflicts between parties, as all the terms and conditions of their partnership are laid out in a document.
2. Establish complete transparency
There is no place for half-truths or untold lies in professional relationships. All rights and obligations of each party should be clearly mentioned in the contract. Do not leave out any important detail, which could later become an obstacle in doing business. You should not make promises you can’t keep, and neither exaggerate about anything.
3. Refrain from complex lingo
Your contracts and agreements should be tailored to your business operations and requirements. An experienced business lawyer can help you with drafting personalized documents that are easy to understand. Cookie-cutter contracts that are downloaded from online resources are usually irrelevant and difficult to comprehend. You and your business partners might not be able to decipher complex legal terms, since you are no experts in Transactional Law in North, Florida.
4. Keep it short, organized, and simple
While comprehensive contracts are highly recommended, do not make them unnecessarily lengthy and abstract. Do not try to communicate something in two pages if it can be conveyed within few sentences. Avoid haphazardness in your agreements by discussing one topic at a time, using headings, and adding bullet points where feasible. A clean, brief, and organized document is a lot more pleasant to read.
5. Deal with the right people
If you are planning to get into business with another company or corporation, make sure you acknowledge their hierarchy. There is no point in discussing your venture and negotiating with someone who doesn’t secure a powerful position at the company. Get in touch with the owner, CEO, or an executive before you draft and sign any contract.
6. Maintain Confidentiality
When you establish a business relationship with an entity or recruit them, you are naturally going to exchange certain business secrets and confidential data. The agreement should obligate both parties to respect each other’s privacy and refrain from revealing any sensitive information. Leakage of classified information can hurt the business in many ways.
7. Predetermine conditions for Termination
Do not forget to discuss the terms of contract termination with the individual/organization you are dealing with. For example, if one party fails to fulfill their part in a transaction or tries to overstep, the other should be able to annul the agreement without taking the fall.
8. Include solutions for possible disputes
Arguments and disputes are not uncommon in business, but most of them can be resolved in an unpretentious and civil manner. Your goal is to avoid business litigation under all circumstances because it is costly and frustrating for both sides. Agree on working out rows and differences through alternative methods like mediation, arbitration, or an out-of-court settlement.