Owners of small businesses will need to create contracts as their business grows. A business contract is an agreement between two parties that is legal and binding. The contract negotiation will be for an exchange of services that both parties find valuable. The contract is only valid when an offer has been made and accepted. By drafting a contract for business purposes you will ensure that an agreement is acted on. If a contract is broken or breached it can result in a out of court settlement with payment for damages because of the breach or a lawsuit. However, it is best to enter into a contract negotiation that is going to give you the best terms for your business. Drafting a solid agreement that you feel confident about is the best way to avoid any type of potential litigation or dispute.
Contract Negotiation For Business Use
Business contracts are often used for various reasons which may include buying or providing services or goods, leases and real estate, partnerships and joint ventures, selling your business, Franchising, Non compete agreements, confidentiality agreements and Hiring or accepting employment as an independent contractor. Even though a contract involves payment for services delivered, non-monetary contracts are also valid.
Oral Business Contracts
An oral contract is just as valid as a written contract even though it is only spoken. If you have been given a promise that work will be done for either monetary or some other type of compensation you have negotiated an oral contract. Although oral contracts are difficult to prove in court because they are so easily misinterpreted, they are still legally enforceable. A contract negotiation that is oral often comes down to the word of one person against another. A contract for the sale or purchase of any real property must be in writing.
Written Business Contracts
Contracts that are produced electronically or on paper are written. A negotiated contract that has been written is much easier to uphold legally, than an oral contract because of the existing detailed written reference for the agreement. The terms of a written and negotiated contract are much easier to prove and thus quickly eliminates any arguments of who said what. It is worth considering drafting a written business contract that includes very specific details about the agreement.
Business Contract Negotiation
A business contract negotiation should be properly labeled as agreement or contract. It may include the names of the parties involved, the contract date, the details of all services the company will receive or provide, the payment amount and payment due dates which can be paid in increments, the interest on late payments, deadlines for services that are due, and the expiry date of the contract. The renewal terms and damages for breach of contract, termination conditions, signatures and E contracts should also be included.
Contracts should be very specific and do not require any legal jargon. Contracts that are clearly and concisely worded avoid confusion, and therefore are the best type of contracts. You need to always make sure that your requirements are clear and concise and not rely on the assumption that the other parties will understands your conditions. Review all contracts thoroughly before signing anything.
Get advice from a Business Lawyer NYC before you sign contracts. This will enable you to avoid many problems and circumvent significant legal fees.