There is an epidemic today in business: poorly written contracts. The proliferation of the internet has only made this problem worse. These contracts are often completely unenforceable. That means they will not stand up in court. A large part of my firm’s practice involves creating and reviewing business contracts, and I cannot begin to tell you how frustrating it is when another business proposes a poorly written contract. A business should not have to guess as to their obligations under a contract. These bad contracts are sometimes created by someone who is not even an attorney!
Good contracts should usually include the following:
1. A clear understanding of each parties obligations
2. How to deal with problems when they arise
3. The length of the agreement and the penalties for a breach
4. Unambiguous writing
5. Definitions of any technical terms
A good contract will save you from future pain down the road. The cost of litigating a bad contract after a breach will almost always be much more expensive than paying to create a good contract in the first place. Remember, an ounce of prevention is worth a pound of care.