Massachusetts business owners often strike up contracts with third parties to get things done. The use of contracts is crucial within business. It helps all parties get onto the same page and understand what everyone expects.
Unfortunately, contracts bring along the possibility of contract disputes. What are some of the most common causes of these disputes?
Self-serving contracts often struggle
Forbes looks at big mistakes you can make that have the potential to ruin your contract. The first potential mistake is focusing on yourself in a contract and making it into a one-sided agreement. All parties must feel satisfied by the terms of a contract. If they do not, they will feel more inclined to take you to court for slights and unfairness, perceived or otherwise.
A lack of updates can also harm you. The law is changing constantly. If your contract lasts for an extended period of time, you want it to reflect the current state of law. This means you have to review it (with the other parties) and update it with some frequency.
Failure to produce a good draft
Bad drafting is another big set-back. You want your contract to be airtight and thorough. The more holes there are, the higher the chance you will run into issues with litigation in the future. Make sure your contract is short, sweet and to the point. Do not alienate potential business partners or customers through it. Instead, use it as a chance to brand yourself as someone who is flexible and inviting.
Above all, once you create and sign a contract, stick with it. Failure to comply is one of the biggest reasons a contract dispute happens. Avoid this and you will avoid most problems.
