American Indian Owned Law Firm

Potential contract mistakes to avoid

On Behalf of | Apr 8, 2023 | Corporate & Business Law

When using business contracts, it’s very important to get the details right. It’s also important to avoid critical mistakes that could undermine the validity of that contract or cause it to apply in ways that were not intended.

With that in mind, here are a few common mistakes that people make. By considering them prior to crafting a contract, you can avoid the same errors and make the process go smoothly.

Failing to draft an official contract

Some people will consider a text message that they receive to be a contract. Others will simply use verbal contracts or handshake deals. While there are cases in which things like this can be binding, they are very weak contracts that do not always hold up. It is far better to draft an official contract so that the details are laid out appropriately.

Not updating old contracts

Some business owners will use similar contracts repeatedly, such as when they’re working with numerous subcontractors. This can be feasible, but it is important to update those contracts. Laws change and contracts must be updated to reflect these changes.

Including illegal or inappropriate provisions

Finally, it’s always important to ensure that the contract has been set up legally and doesn’t violate any laws. For example, an employment contract that violates an employee’s rights by imposing some type of discrimination on them would not hold up in court. It doesn’t matter if the employee and the business owner both signed the contract. Contracts always have to follow the law, first and foremost.

As you can see, contract law can get very complicated, and it is important not to make these mistakes. Be sure you know exactly what legal steps you’ll need to take.