Contract disputes often arise from an array of different circumstances, but what many of them share in common is the fact that they often prove costly, stressful and time-consuming. There are, however, certain steps you may want to consider taking as a business owner that could potentially help prevent contract disputes from arising in the first place.
What types of efforts that you make now could possibly help you avoid costly contract disputes down the line?
- Using clear, concise language in your contract
When it comes to drafting a contract, brevity and conciseness are your friends. If anything in that contract is vague or unclear, you run the risk of someone potentially challenging its meaning or intent. The less you leave open to interpretation, the better.
- Planning ahead for future variables
It may also help your business avoid contract disputes to account for potential variables and consider what the future holds. For example, you may want to address what should happen in the event that one of the businesses bound by the contract closes. Similarly, it may serve you well to address whether the contract self-renews or if anything could happen that would make the contract invalid.
- Having a notary present when signing
It is always advisable to have a notary there when you and another party sign a contract. For starters, this minimizes the chances of the other party attempting to argue that the contract is invalid. It also boosts the odds of the other party thoroughly reading the document before signing it, which may cut your chances of finding yourself embroiled in a contract dispute.
Ultimately, avoiding all contract disputes is probably your primary goal, but if you do find yourself or your business involved in one, know that it does not necessarily have to lead to litigation. Depending on the circumstances, you may have other possible solutions available to you.