Disputes over contracts can easily occur in the course of running a business. It might be over a contract with a client, a supplier, an employee or someone else entirely. But one thing is clear – a dispute can be damaging so they are best avoided where possible.
One way to reduce the chance of disputes is to ensure you have well-written contracts. Poorly written ones can not only cause problems but may also be dismissed by a judge if things go to court and the judge considers the contract invalid. The following can help:
Use strategic end dates and reviews
It’s advisable to have an end date on any contract you sign. Even if you are unsure about how long you want it to last or hope that it will last forever, you need to put an end date. You can then set a note in your calendar to review it and update it before it expires if you still want to.
Make it clear that both parties consent to the contract
One way people can challenge a contract is to claim they never consented to it. A contract without the clear signature of each party will make it harder to prove there was consent.
Not only do parties need to consent, they need to do so of their own free will. If a judge sees a contract is very one-sided, or was made when the mental capacity of one party was questionable due to age or illness, they may suspect consent was not freely given and invalidate it.
Ensure the contract requirements are legal
The laws can change and they can sometimes change quickly. What was allowed today may become disallowed tomorrow. You need to ensure your contract does not expect either party to do anything the law does not allow.
Contract law can be complex, so it is wise to seek legal guidance to get your contracts right and examine your options if a breach occurs.