Should You Draft Your Own Business Contracts?
As a business attorney, you need to have an education in law and years of experience to draft contracts that effectively serve your clients. Contracts that are not prepared by competent legal counsel frequently fall short of offering the parties involved suitable safeguards. For instance, contracts drafted by business people who are not attorneys frequently misuse crucial phrases or lack crucial legal protections, leaving holes in a contract. A well-written contract can give a business owner stability and help them avoid errors that could cost their organization a lot of time and money.
4 reasons why you shouldn’t write business contracts on your own
- The Agreement might not accurately reflect your goals.
- Even while an online form contract could appear alluring, it might not be able to satisfy your particular requirements. It’s possible that you don’t fully comprehend its clauses, technicalities, or legal jargon. Long terms in a form contract may be difficult for an inexperienced reader to understand and may contain provisions that do not fit into your particular circumstance. They may hit on intricate legal theories that only a skilled lawyer would be able to comprehend. In the end, utilizing a template contract without getting specific legal advice can result in your company being obligated to legal clauses that you did not mean to include.
- Your agreement might not be upholdable.
- Even if a contract is signed by both parties, a court may nonetheless refuse to uphold a settlement just because two parties reached an agreement. A court of law may also read unclear contract clauses in a variety of ways, and the interpretation that they land on may not be in your favor. A contract could also be unenforceable due to other problems. If the opposing party is a company, for instance, the person signing the contract might not have the legal right to make a legal document on the company’s behalf. A court cannot enforce a contract against a company if the author lacks the power to represent the company.
- You may be working against your own interests.
- An agreement between businesses involves numerous legalese. A poorly drafted contract could endanger both your company and you personally. Only a knowledgeable attorney will be able to identify precisely which interests are at risk and how to best preserve them.
- You can be forced to abide by the law’s default requirements.
- In the event that a significant term is not covered by the contract, default legal requirements will probably apply. For instance, who absorbs the loss if purchased products are destroyed before being delivered to the buyer? Without a specific contract clause, default rules will be in effect, and you can find yourself forced to pay for something you never intended to be your obligation.