Many small businesses in Alberta face countless legal problems regarding business agreements every day.
As a Canadian province with the majority of companies being small businesses, business owners would do well to avoid problems with contracts. These challenges require a great deal of resources to fight. But, sadly, when you lose the battle, you also lose assets, which might force your business to close.
Thankfully, there are business agreement lawyers in Alberta helping companies avoid contract problems and prevent bigger issues. And among the countless contract issues that need the expertise of contract lawyers, one worth mentioning is stating the specific terms and conditions of the agreement.
What are the most common problems in your contract’s terms and conditions?
Unclear Contract Particulars
It is easy for business owners and potential partners to be confused by the terms and conditions of a contract, leading to one or both parties not assuming their roles. This is usually the case when a contract is vague or uses complex words, especially when stating the particulars of the agreement.
Without complete understanding, one will fail to step up to the expectations and cause misunderstandings. Ultimately, contracts will cease to work between both parties and end on a bad note.
Unclear Payment Terms
Examples of confusing payment terms are the contingency clauses “pay-when-paid” and “pay-if-paid.” Both look and sound the same, but they are very different.
However, both terms refer to the one responsible when financial risks are met, just that their meanings depend on the clauses. So, it’s always best to use simpler terms or have a contract lawyer explain the clauses to avoid misunderstandings.
Delivery dates are crucial in contracts and thus need to be specified. Unfortunately, when unclear, it can lead to delays, loss of resources, more work, and added stress.
Absence of Price Protection
Without legal guidance, business owners fail to include price protection in the business agreement. This detail is quite essential because price hikes often occur. When this happens and price protection is lacking, businesses must pay more because of increased prices, even if both parties have already signed the contract.
How can you avoid these problems?
The best way to prevent conflicts with business partners is by stating the terms and conditions of the contract in specific detail. And you can do this by pointing out the details through the following:
● State every point clearly, using simple and concise words.
● Know the parties involved and state their names correctly.
● Avoid using confusing terms, especially with regards to the payment obligations.
● Write an agreement about situations that can terminate the contract.
● Find ways to solve disputes and put them in writing.
● Specify competition clauses in the contracts to avoid breaches in the agreement.
● Honor the contract’s confidentiality and keep it only between the parties involved.
● Always review the contract before and after signing and through the duration of the business partnership.
Writing a business contract may look easy. However, it is not always the case.
Many business owners fail to specify details in the agreement, which, unfortunately, leads to disputes between the parties involved. But you can easily avoid this scenario.
When businesses hire competent business agreement lawyers in Alberta, companies can create a clear and solid contract, making a partnership successful.