In an ideal world, business deals can be closed by handshakes alone and everyone can leave the table aware of the terms, conscious of their respective duties, and mindful of their legal rights. However, this is not how things work in the world we live in. If we want to make a business deal, then we put it into writing by means of a contract.
Needless to your business contracts are vital to ensuring that your business is able to grow and prosper. They essentially govern the way your business functions. They may serve a number of different purposes but they dictate the rules of your business relationships. For instance, your contract serves as your protection if anything goes awry.
Of course, this does not mean that simply having a written contract will automatically protect your business from the fallout of unfortunate situations. Your contract needs to be well written, and tailor-fit to your needs in order for it to be able to effectively do its job.
No two contracts could ever be the same as different situations entail different demands. However, there are certain essentials that need to be included in your contract regardless. This includes the following:
- Venue and Choice of Law Provision—This provision essentially gives you the power to use State laws as the means to interpret your contract. You can even determine the location for any legal action. This provision comes in handy if you are conducting business across state lines, as it can help you litigate locally.
- Attorneys’ Fees – It is allowed in most states for the prevailing party to demand the return of its attorneys’ fees and legal costs when a breach of contract occurs. Including this provision in your contract also effectively strengthens your claims once the dispute is over.
- Integration Clause —This is another vital addition to any business contract. The integration clause effectively limits the agreement to what is stated in the contract itself. So, if it is not indicated in the contract, then there is no grounds for a dispute.
By no means is the list above a comprehensive one. However, what readers should take away from this is the necessity of putting in legal protective measures into the document. The importance of this cannot be said enough. Make sure to consult your business lawyers. By having a contract that protects you, you can focus on the important thing – your business.