Business contracts can address an extremely wide range of possible situations, from leases and real estate contracts to operating contracts and partnership agreements – and everything else in between. So, what is the main purpose of all of the contracts your business is a party to? Quite simply, it is to protect your business.
So, are the contracts you sign really protecting your business? If they have been drafted hastily and don’t contain the proper details, the answer might be “no.” The heart of a contract is the promise between the parties to perform in some way.
Leases, for example, can be notoriously one-sided in favor of the landlord – that is especially true for residential leases. But, for commercial leases, don’t underestimate the power your company has to dictate many of the terms. That is the same in many business situations in which a contract is needed. When you have the opportunity and the leverage, take advantage of that power to dictate some of the most important terms in the agreement.
Key to contracts
Perhaps the most important parts of any contract are that, to begin with, it is drafted correctly and, before it is signed, that it is reviewed thoroughly. For many business leaders in California, much of the language in a contract can seem like “boilerplate legalese.” While it is true that there is some common language that usually appears in many contracts, regardless of the situation it addresses, the fact remains that each contract is unique – be sure that it is helpful to your business, not harmful.