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Quick Tips Before Signing a Contract

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Business Formation & Planning on Wednesday, December 16, 2015.

A business contract isn’t just a piece of paper. It’s a document that explains who you are doing business with, what type of business will be conducted and much more.

What is the person’s reputation in the industry? How has the business dealt with past deals? What is their reputation?

Consider the following factors before you sign an agreement:

  • Read the full agreement. This seems simple. However, all too often individuals sign agreements without reading the terms and conditions. If there is language that seems subjective or unclear, have an attorney review it with you and suggest amendments.
  • Know who’s involved in the contract. Who does the contract include? What parties will be held liable if there is breach of contract? Be sure the contract clearly identifies all parties.
  • Be aware of the length of the agreement and how it affects business. Make sure the actual length of the contract is clearly identified within the contract. If the contract is going to be renewed, how will that be handled? If the terms for the length of the contract are unclear, you can have an attorney assist you in making that language clearer.
  • Know your rights. Know what you are entitled to under the contract and what you are required to deliver. What happens if something goes awry? An attorney can draft terms in a contract to protect you from risks of liability and help you get what you bargained for from the deal.

While you may not consider working with a lawyer for drafting and signing a simple contract, the reality is that a lawyer can help save costs for disputes that could arise in the future. The time and money you spend, upfront, can ultimately be much more cost-effective. Consider how legal contract representation could benefit your situation.

Business Law, Contracts, tips on contracts

Business legal services in Silicon Valley

Avoid a Contract Dispute Through Drafting a Watertight Agreement

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Contract Disputes on Thursday, September 17, 2015.

Before embarking on a construction project, having a well-drafted construction contract is vital. There are numerous variables that will have to be addressed to protect a California contractor. Financing, escalation of material prices, dealings with local governments, potential defects and more can have significant financial consequences for the ultimate success of the project and even lead to a contract dispute.

The guidance of an experienced construction contract attorney can be invaluable in drafting the contract and in providing advice with regard to the preparation of the project prior to drafting a contract. The purpose of a construction contract is to assign the rights of each party, as well as delineating responsibilities and duties. A well-drafted agreement can reduce risks of misunderstandings and may prevent expensive litigation at a later date.

The various parties in the contract must be clearly specified, and the scope and pricing of the project must be noted. Furthermore, timelines must be stipulated, along with payments and the retainage portions of payments. If a loan or another type of financing is involved, the details must also be spelled out in the contract.

Regardless of the relationship between the contracting parties, verbal agreements — even covering one small detail — can be detrimental and could even jeopardize the project. There are many additional issues to address to avoid a contract dispute, and the complexity varies according to the scope of the project. California contractors may find comfort in knowing that the services of attorneys who focus on the prudent planning and drafting of construction contracts are available to assist in pursuing the completion of profitable contracts.

Source: msbusiness.com, “COMMERCIAL FINANCE 701 — Construction contracts and risk mitigation“, Sept. 10, 2015

Contract Disputes