When a contract is strong and thorough, everyone is happy. A well-drafted agreement provides protection for all involved parties while enabling you to adhere to the needs of your business. That said, there are a lot of hurdles you must cross with your legal counsel as you look to develop a good contract. As you move forward with your draft, avoid the following pitfalls:
- Dismissing legal matters: There is no point in creating a contract that does not follow Arizona and federal laws. When you do not comply with state regulations and legal boundaries, you set yourself up for potential disaster.
- Making it about yourself: The other entities involved in your contract need protection and remedies should your side of the transaction fall short. Furthermore, if you make a habit of drafting one-sided contracts, partners or vendors may not want to deal with you in the future.
- Assuming the contract is final: One sneaky mistake people often make is assuming they will have no need to revise the contract in the future. As times change, so do the needs of every business. Contracts should reflect those needs and adapt to the seasons.
- Poor writing: The language in your contract should be accurate and concise. Vague phrasing or otherwise indirect language may leave you and business partners with the wrong impression regarding the agreement.
One way to ensure the protection of a good contract is by prioritizing your needs and the needs of the others involved. In doing so, you may keep your goals in line with what matters while avoiding the above mistakes.