Contract disputes easier to handle if contract at issue is "good"

For most any business contracts play an important role. Accordingly, it is vital that every contract entered into is a solid, "good" contract. The failure to make sure this occurs, can seriously impact the business’s ability to turn a profit. But what constitutes a good contract? In this post we will discuss just a few of the things that businesses should consider including in a contract.

There are many elements that go into a contract being strong. Some of those elements involve the content of the contract. The contract should be clear. This means that in addition to being in English, the terms utilized should all be defined so that they are not the subject of litigation later. Terms should also be clearly laid out such as:

  • Pricing
  • Schedules
  • Delivery requirements

Other things that should be taken into consideration are the process that the parties will follow should a breach occur. For example, the contract may provide a provision that requires each party to be given time to cure any breach prior to a lawsuit being filed. Should the breach not be cured, the contract can require that alternative remedies be attempted to resolve the matter. The contract should also outline which state’s laws will be applied.

For many businesses starting out it can be tempting to take a short cut and obtain a sample contract online. This approach could save money in the short run but ultimately lead to great expense in litigating contract issues that arise. The best bet for anyone with a business i s to work with a lawyer.