By Kathleen Moore
Business people often consider legal documents to be complicated, like loan agreements with confusing terms, proposals for complex transactions, leases and other business contracts. Therefore, these business people know they should read legal documents carefully before signing them. However, because of time constraints, among other reasons, many do not follow this rule. Here are some tips everyone should follow when entering into a contract:
Put the Agreement in Writing. Oral contracts are allowed in many cases, but are very risky because of the high likelihood the parties will disagree about key terms or omit important items. Furthermore, some contracts must be in writing; for example, contracts regarding the sale of real estate, wills, promises to pay and agreements to sell goods over $500.
Properly Identify the Parties. Often when businesses enter into contracts, the contracting party won’t be an individual but rather a business entity. It is important to properly identify the entity to be able to enforce a claim against the correct party in the case of a dispute later.
Include a Provision About How Disputes are Resolved. Parties can agree in advance the manner in which disputes arising from the contract will be resolved. For example, many contracts say the disputes will be resolved by arbitration or mediation. These methods are typically less expensive and faster than going to court.
Make Sure the Agreement Contains All of the Terms. Prior to entering into a contract, many terms will typically be discussed. Before signing, it is vital to ensure that all of the terms that the parties agreed on are in the contract. As a general rule, when there is conflict between a purported oral agreement and what was included in writing, the written contract will control.
Specify Which State’s Laws Governs. Since law varies from state to state, the parties should be sure the contract correctly states which state’s law applies in the case of disputes. It is also recommended to include a provision specifying where legal action will take place.
Include Termination Provisions. Each contract should include a provision allowing the parties to terminate the contract upon proper notice. This offers a means of protection if the parties are not satisfied with the performance under the contract. It also allows a party to get out of a contract if they experience problems that should necessitate it.
Read the Document Carefully Before Signing. This basic rule can easily save a significant amount of time, money and hassles later litigating a dispute over the contract. Before signing a contract, take time to consider the meaning of every provision. When there is not enough time to read all documents carefully, it is often well worth seeking professional assistance.
Thanks to the law offices of Kathleen M. Moore, LLC, located at 351 South Cypress Road, Suite 404B, Pompano Beach, FL 33060. The office can be reached at (954)366-3694 or via email at . Visit the firm online at cheap lasik surgery philippines.