Well-drafted contracts prepared by your tax and business attorney can provide protection for the parties signing it. Contracts determine rights and obligations. Yet, many businesses enter into transactions with poorly written contracts or contracts with “boilerplate” or “standard” provisions that are not favorable to them.
There is no such thing as a “standard” contract!
In some cases, business owners and managers make deals with no written contracts at all. When disputes occur, they are forced to rely on memory and find that verbal contracts are difficult to prove in court.
Remember, an oral contract may be enforceable it is just difficult to prove.
Those signing contracts sometimes overlook important provisions, including clauses that lay out the “choice of law” and “venue.” These clauses determine what law applies and the location where disputes related to the contract will be resolved. You don’t want the inconvenience and expense of being pulled into court across the country. The Internet has changed the way we do business and you may sign contracts online. These days, determining jurisdiction can be complicated when there are multiple locations involved in one contract.
It’s also important to review contracts after laws and regulations change to ensure they are still strong.
Bottom line: Make sure you “get it in writing” by signing carefully drafted contracts with customers, vendors, employees and others. If you have a question, please call me at 856-665-2121
Ronald J. Cappuccio, J.D., LL.M. (Tax)
