Do You Need to Create a Contract? Avoid These 3 Common Pitfalls
Do You Need to Create a Contract? Avoid These 3 Common Pitfalls - Post
There are many situations in which it’s necessary to create a contract. For example, perhaps you’re entertaining who needs an entertainment contract. Perhaps you’re forming a corporation and need to ensure that all parties are on the same page. Whatever your situation is, one thing is for sure: It pays to hire an attorney. Learn about three of the most common pitfalls of creating a contract on your own.
1. Not having a contract that’s specific enough
One of the issues with contract creation is that they’re often drawn up when the parties involved are in good standing with one another. All parties involved often assume that everyone will be fair if the contract needs to be modified or broken. Unfortunately, this is rarely true.
The messiest contract disputes often come to be because the contract isn’t clear enough. A good contract should detail every specific about the parties, what the expectations are, what the commitments are, what will happen in the case of disputes – and much more. Contracts should consider and prepare you for the worst case scenario.
2. Not including resolution methods
As we mentioned above, a good contract should include specifics about what happens if a resolution is needed. There are many options available. Perhaps the parties involved want some sort of alternative dispute resolution, like arbitration and / or mediation. Those options can be more affordable and bring a resolution quicker. On the other hand, traditional options like litigation may be necessary. Regardless, the contract should be specific about when litigation can be considered.
3. Having one party draw up the contract
A contract, by definition, is signed by at least two people. As a result, at least two attorneys should be involved – one for each “side.” Even if you feel that you’re on the same side, you want to ensure that you have an attorney who’s primary purpose is to look out for your interests. If you trust an attorney to look after the best interests of all parties involved, you’re likely to find that the contract is balanced more toward one party than another.
If you have an issue with a contract, or you need to draw one up, Gilbert and Smallman look forward to working with you. Call our offices today to set up a consultation and find out how we can help ensure you’re adequately protected by your next contract.