The backbone of a successful and running business is a well-written contract or agreement. A business agreement defines the working operations and principles of a business. If it is drafted with the best interests and factors, growth and expansion go hand in hand. To avoid making any blunder while drafting a business contract, you should have it checked by a Las Vegas Business Litigation Attorney.
A business agreement must include and cover all the essential factors like employee policies, payment litigation, etc. If any aspect is not stated comprehensively, the business could face a few issues in its operations and transactions. To help you draft a clear and complete business contract, here are some of the common mistakes committed by the business owners that you should avoid.
- Contract termination period
Often overlooked, many business owners forget to state the contract’s termination. A business involves more than one party in operations and transactions. These operations define the business relationship between the two entities. As a result, the termination clause will help the owner to offer a grace period for extending the contract or mentioning the consequences of termination. Always ensure the contract has a termination or rescission clause.
- Ambiguity
Not only a business contract, but any contract should avoid ambiguity. The business agreement or contract should be clear, explicit, unambiguous, and understandable. Ambiguity in a business might indicate the low-level functioning of a company for other entities. Ensure the contract states everything to the point without the sound of being repetitive.
- Litigation
The contract should not miss out on provisions stating the resolutions on disputes. It is necessary to include clauses that specify court rules in dire situations. Even if court action is not needed, one should state an arbitrary resolution for the dispute. Addressing the laws to handle conflicts and the liability of breaching the agreement must be included in the contract.
The contract should also include the clause that specifies the termination clause of an employee. Specifications like notice period and resignation responsibilities should be mentioned as well.
- Assistance
Often, many business owners commit the mistake of drafting a do-it-yourself contract, primarily online. These one-in-all contracts are never in compliance with actual-world business agreements or deals. In a worst-case scenario, these contracts could backfire on the business owner.
On the other hand, a business litigation attorney in Las Vegas might assist the business owners in drafting a perfect contract that includes every provision and litigation.