Getting the right contracts for your business

By James Jacobson, attorney

A lot of people think the best way to get contracts for your business is to find a form online. Just by pulling a form off the internet, they think that the form is going to get them what they need because they need a contract. The reality is that the contract is designed to shape or define the relationship in your business, and you want to make sure that contract is fitting what you need and what you’re trying to accomplish. Having a good contract can be a way of developing a relationship, whether it be a customer or a supplier, or another business you are working with. Some believe because I’m going through a repetitive action with this other party it means that I can use just any type of form for the contract, that an online form is good enough.

Even though you may use the same form with different parties, with whatever relationship you are engaging, having contracts tailored to meet your needs is important. You want a professional who can help you define that relationship. Using an attorney can help you stay on course with what you want to accomplish in your business.

Some think you can do transactions with just a handshake and it’s not a big deal- we understand each other, we talked through it, and that’s sufficient. Although this is a good way of developing trust in a business, but a contract, a formal written contract can be a very powerful way to maintain the trust and accomplish your business goals. If everything is defined, and all can reference the document, it can strengthen the relationship, rather than it become difficult or even adversarial. Your contract language is written to be reflective of that relationship, but may not be able to anticipate every situation or problem.

Some will say, “I want an iron-clad contract” that’s going to stand up in court, and there really is no such thing. A contract cannot anticipate every circumstance or address every issue. When you take a contract into court, you remove it away from the initial understanding of the two parties and it’s put into the realm of a third party, who is trying to figure out what the original two parties meant when the contract was created. So a contract will not keep you out of court, but a contract can define for you the relationship that you are engaging in, and the transaction you are engaging in, in a way that can create greater stability. If need be, if disputes arise and you are not able to resolve them, then your contract can be the means of resolving your issues through the court process.

How do you get a good contract in place?
You use an attorney who can understand your business, and what kind of relationship you are trying to create with the other party, who will craft the language to solidly define that relationship.

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