Establishing relationships with business partners is crucial to the growth of your company. A solid written contract can make a significant difference in these relationships and ensure that the partnership serves your best interests.
When negotiating a business contract, avoid these common errors to prevent legal complications.
1. Rushing the process
While you may be anxious to close the deal, signing too hastily can lead to complications later on. Take time to read the contract thoroughly, negotiate the parts that do not suit your interests and clarify any vague or contradictory language.
2. Copying a template
Thanks to the internet, it is easier than ever to find sample contracts for almost any business deal, but this convenience generally does more harm than good. A generic template is no substitute for a unique, detailed contract that is specific to your business. If you use a generic contract, you run the risk of omitting critical details and leaving your company vulnerable to legal issues.
3. Leaving no way out
Business partnerships end for many reasons. Your contract should address the issue of terminating the partnership and what each party’s rights and responsibilities are.
While a standard contract allows for termination if one party breaches the terms of the contract, it may be in your best interest to include a provision for early termination for other reasons. Being stuck in a contract that is no longer serving your needs can hinder the growth of your business.
Negotiating the details of a business contract can be tedious and time-consuming, but it is important to be thorough. The time you spend negotiating the contract is an investment in the future of your company.