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How and Why Businesses Must Use Contracts for Every Transaction

A contract is an absolute essential in any business transaction – however it is often overlooked as unnecessary or overly formal. As your Fort Lauderdale contract lawyers will explain further, a contract is a (relatively) simple document that can help avoid all kinds of issues in the future – including discrepancies over misunderstood delivery times, non-conforming goods, or misperceptions in payment terms. As the old saying goes, “an ounce of prevention is worth a pound of cure,” and this sentiment could not run truer than in the context of business contracts and the extent to which a short document can avoid a costly disaster.

Basics of a Contract – What Should be Included?

Obviously, your business contract should set forth the terms of the agreement as discussed between you and the other party. In the context of a contract for the delivery of goods, the contract should set forth the date of expected delivery, the precise description of the expected goods (e.g., size, weight, quality), and which party is assuming the risk of damage prior to delivery. Of course, the contract should include the specific price term per item, including applicable fees, taxes or other additional expenses anticipated by both parties. Lastly, your contract should include basic boilerplate language, including a clause stating that the agreement encompasses the entire understanding between the parties. This type of contract term helps to avoid a situation in which two parties have oral conversations before the contract is drafted, and then attempt to include those oral promises as part of the agreement after the contract is executed.

Is it Worth It?

A contract can help avoid a host of problems between your business and other third parties. Obviously, it can be very difficult to remember every conversation you have with your vendors or customers, which makes having a written agreement very handy in the event either party is unclear about the terms of the business relationship. Aside from the memory factor, a contract can help you advance your claims in the event a conflict arises between yourself and another party. If the conflict results in the need for litigation (court intervention), the terms of the contract will control as the judge makes his or her decision in your matter. At this point, litigating an issue without the benefit of a contract would result in the court imposing its own interpretation of the relationship between the parties, thereby taking most of the resolution control away from those involved in the business disagreement.

Contact Experienced and Detail-Oriented Contract Lawyers Today

Contracts must be tailor-made to fit each business relationship, and Ft. Lauderdale contract lawyers are in the best position to help your business protect itself from unnecessary conflict and exposure to liability. To get started on your contracts, please contact Michael L. Feinstein, P.A. right away. To make an appointment, please call (954) 767-9662.