New business
relationships can be very exciting for business, but it’s important not to
forget about the value of a clear, well-written contract. An attorney that
specializes in business law and litigation can help you develop a full-proof
contract that lays out the rights and obligations of all parties and ensures
your rights and interests are protected. With a good contract, you can avoid a
dispute down the road, which can result in trouble for business and costly
lawsuits. Charles PT Phoenix
Attorney shares
three tips to help you avoid a contract dispute.
1.
Identify Performance Standards
When defining the
performance standards of the parties involved, it’s important to use language that
has clear meaning. Too often, businesses make the mistake of using broad terms.
It’s not enough to say someone must conform to industry standards or industry
best practices. You must outline exactly what those are to ensure there are no
discrepancies in the future.
2.
Define Potential Misinterpretations
Without clear
language, it can be easy for parties to misinterpret parts of the contract.
Define any areas where misconceptions could occur. Make sure the expectations
of all parties involved are clearly stated in the contract and are also
understood before signing. This will help ensure everyone is on the same page,
as well as prevent accidental breach of contract.
3.
Include Provisions for Early Termination
Instances
may arise when a party may no longer be able to fulfil their obligations as
stated in the contract. Or, perhaps the services provided by the contract are
no longer needed. Either way, instead of waiting for a breach of contract,
including an escape clause can save you a lot of time, stress, and money. An
early termination provision allows either party to exit the contract. In
return, they must pay the other party either a percentage of the amount that
would have been paid over the life of the contract or the estimated profit that
they would have made had the contract been entirely fulfilled.
