Why Are Business Contracts Important?

A business contract is a legally binding agreement between two parties. It outlines the rights, responsibilities, and obligations of each party. Whether you want to buy or sell a product from a business or individual or plan to provide a service to an entity, it is critical that you create a business contract. A business contract should be enforceable and should protect the interests of both parties.


As a business lawyer, a service we can provide for our clients is that of a contract lawyer. We work to provide clear legal solutions for an array of contract conflicts for our clients across Sonoma County. Here are a couple of reasons why we believe hiring a layer to write business contracts is important for your company.


Prevent Conflicts and Mitigate Risk


Verbal terms or conditions that are accepted today can become a point of contention tomorrow. This can lead to disputes and one party may eventually pull out from the agreement.


One of the several downsides of verbal contracts is their lack of clarity. People change, memories fade, and one person’s version of an event can be different from the other.


Written contracts offer clarity. Parties, or their representatives, work together to draft a contract. Once the contract is drafted, parties can review it and raise objections. Any confusion or conflict of interest should be addressed at this point.


Once both parties sign the contract, they must obey the terms of the agreement. Because a written contract provides proof of details, neither party can abrogate their responsibilities.


Protect Confidential Information


If you want to protect information pertaining to a project, you can include a confidentiality clause and non-disclosure provisions in your contract.


When a confidentiality clause is included in an agreement, the parties are legally bound to maintain secrecy on transactions and information shared among them. If a party violates a non-disclosure agreement, they can be held liable for the breach of contract.


Make Conflicts Easier to Navigate


If a conflict of interest occurs, parties to a contract can revisit the written agreement to determine who is at fault.


A written agreement makes it easier for third parties such as arbitrators, business lawyers in Sonoma County, and judges to navigate partnership disputes. When a business hires an arbitrator to help resolve a dispute between partners, they can refer to the agreement to determine whether a negotiation should be initiated, or the partnership should be dissolved.


Why Hire an Attorney for Contracts 


Every business needs a contract lawyer. When drafting a contract, your contract lawyer will protect and promote your interests. Contract lawyers will negotiate the legal terms of a contract on your behalf. Contract language is complicated. Your attorney will help you navigate contracts. If a contract is breached, your attorney will initiate legal action and will also represent you in court needed if.


Facing a civil legal issue? Need help developing your company policies? Stephen M. Beckwith has years of experiencing helping clients navigate the complex legal landscape. Call our office at (707) 526-5454.