What Are Common Mistakes in Drafting a Business Contract?
In order to do business, you need to have contracts in place. What happens if those contracts are written improperly? This can lead to all sorts of problems down the road, so it is important to draft your contracts carefully with a lawyer. Here are some of the most common mistakes people make when drafting a contract.
Not Defining the Parties Involved
In any contract, it is important to include all of the parties involved in the business. Without this information, there is no way to enforce the contract if something goes wrong. Make sure you include the full legal name and address of each party involved.
Not Defining the Terms of the Agreement
One of the most common contract drafting mistakes is failing to sufficiently define the terms of the agreement. When parties involved in a contract do not agree on what they are trying to accomplish, it can lead to misunderstandings and disagreements down the road. As a result, it is essential to include a clear and concise definition of all terms in your contract. Otherwise, there is a risk that the court will find the contract to be ambiguous and unenforceable.
Not Being Specific Enough
When it comes to contracts, more specifics are better than less. Otherwise, you run into problems later on when people try to interpret the contract differently. For example, if you are renting out a space, be specific about how much square footage is included. The more specific you can be, the better.
Omitting Important Details
It is important to be as specific as possible when drafting a contract. That means not leaving out any important details. For example, if you are selling a product, make sure you include information about warranties and returns. If you are hiring someone, be clear about what their duties are and how much they will be paid. Every detail matters in a contract.
Using Incorrect or Ambiguous Language
The language you use in a contract is just as important as the details you include. Use clear and unambiguous language that cannot be misinterpreted. If there is anything you are unsure about, have an attorney look it over before signing anything.
Not Getting it in Writing
Every contract should be in writing. A verbal agreement might seem ironclad at the time, but it is very difficult to prove later on if something goes wrong. Plus, putting something in writing helps ensure that both parties understand and agree to the terms of the contract.
Annapolis Business Lawyers at Oliveri & Larsen Will Help You Avoid Contract Drafting Errors
Running a business is challenging, but there are parts of it you can outsource to trusted legal advisors. Instead of trying to do it all yourself, work with one of our experienced Annapolis business lawyers at Oliveri & Larsen. Call us at 410-295-3000 or contact us online to schedule an appointment. Located in Annapolis, Maryland, we serve clients in Ocean City, Anne Arundel County, Baltimore County, Baltimore City, Calvert County, Hartford County, Howard County, Queen Anne’s County, St. Mary’s County, Worcester County, Kent County, and the upper and lower Eastern Shores of Maryland.