If you run a small business, there is a 36-53% chance that you have at least one lawsuit going on in any given year. You might think that as you grow bigger, that your chances of getting sued go down. That is not the case. At any given time, 90% of all businesses are involved in some form of litigation.
If you want to write a contract that covers all the bases, hire Florida corporate lawyers and read our guide today.
Get It in Writing
In the court of law, the written word is far more powerful than things you say out loud. In some contexts, oral agreements can be used as evidence in court. People’s memories are not always crystal clear, in large part because people don’t want to remember agreements they made when it does not help their case. You do not want to get into a he-said she-said situation. If it is something that you need, put it in writing.
You are going to want to be as detailed as possible. This means that if you want to receive payment near the beginning of the month, you should not write ‘near the beginning of the month’ in your contract. A judge may not know if you mean the first, the second, or the tenth. If you write your contract law in a vague way, you are leaving yourself open to ambiguities.
Stipulating that payment should be received by the first of the month will help you. Both sides need to understand what they are agreeing to, and it should be as detailed as you can possibly make it. In the business world, the situation is constantly changing. You need to be able to account for many different circumstances.
Think About a Mediation or Arbitration Clause
Even the most well-written contract can lead to disputes. When things start falling apart, you need to make sure that your business is protected. Mediation and arbitration may be the solution to your problem.
Mediation is a process where both parties attempt to solve their problems directly, with the help of a neutral third-party negotiator. It is entirely voluntary, and both parties must agree on any settlement.
Arbitration is very similar to the typical court process. Both parties argue in front of a neutral arbitrator. The arbitrator then makes a binding decision, which holds legal weight. Generally, it is faster and cheaper than going through court.
Whatever you decide, it is a good idea to think about how the contract should end. There needs to be a way to resolve disputes. If there are no disputes, you should specify how and when the contract officially ends.
Do Not Take It Lightly
A contract is a legally binding document. Often, violating a contract comes with punishments. If you own a small business, being successfully sued could mean that you shut the lights off for good. As you are preparing to sign a contract, you are going to want to do everything in your power to make sure it says exactly what you want it to say. Making sure your contract has no holes is not only useful, it is a necessity.
The Berman Law Group can help. Our team of Florida corporate lawyers can assist you with your contract. We have already helped hundreds of business owners in South Florida, and we would like to help you too. Call us today at 1-800-375-5555.