Moorestown Business Contracts Attorneys – LaVan Law
Business contracts typically detail each party’s financial obligations, performance responsibilities, and legal recourse in the event of a breach or dispute. For these reasons, drafting and reviewing business contracts is essential when protecting your financial interests and legal rights. Additionally, in cases where a contract includes ambiguous or unclear language, the courts are more inclined to hold the party responsible for drafting the contract accountable for any disputes that arise as a result. This means if you draft a business contract that doesn’t clearly delineate rights and responsibilities, you may find it difficult to enforce should there be a breach.
Drafting, Signing, and Negotiating Business Contracts
In this regard, perhaps the most important aspect of a contract is whether or not it’s enforceable. If a contract imposes unreasonable conditions on one party or places an undue burden on another, it may not be enforceable. For example, a business contract that stipulates all accounts receivable must be paid in full before services are rendered may place an undue burden on the party that must front costs before it receives the services contracted for. As a result, if a breach occurs, the court may decide the contract is not enforceable given the undue burden it places on one or more parties to the contract.
Here, another common problem is often involved – the use of vague or poorly defined language in enumerating responsibilities and obligations pertinent to a contract. While this can lead to arguments about the scope of work to be performed, the use of intellectual property rights, or financial issues, it can lead to additional complications if the terms contained in the contract for settling disputes require mediation.
In this regard, if a contract requires mediation to settle disputes, you may forego your right to litigate. While litigation can be more expensive, depending on the issues involved, it also provides you with an opportunity to recover more of your losses due to a breach of contract. Since mediation involves settling on terms agreeable to both parties, you may end up absorbing some of your losses in order to repair a contract breach.
Protecting Your Interests in Business Contracts
Working with an experienced business law attorney can help you pre-empt breaches of contract and exposure to unwanted liability through vague or misleading language. Reviewing the terms and conditions of a business contract with an experienced business law attorney can help you identify clauses that need to be clarified, struck from the contract altogether, or carefully considered before accepting.
For more information regarding our business law practice and how we can help you, contact Moorestown business contracts attorneys at LaVan Law today.