Contract disputes are quite common in the business world, and they tend to be costly and time-consuming. There is some good news, though, because many of them are also preventable. By taking certain measures when drafting and signing your business contract in Tennessee, you may be able to prevent misunderstandings; in doing so, lowering the chances of potential litigation.
Just what sorts of actions might you take to lessen the chances of finding yourself at the center of a contract dispute?
Use clear, to-the-point language
When creating a business contract, you should avoid any ambiguity in the language you use. Any wording that appears vague, unclear or open to interpretation may prove to be just that, meaning that someone may have cause to challenge it in court.
Have a notary present during execution
Having a notary present when you and another party sign a contract solves two potential problems. First, it prevents the other party from arguing that he or she never actually signed the document. Second, it increases the odds of the other party having a solid understanding of everything the contract entails when signing it.
Address future variables
Any number of circumstances may arise that could lead someone to challenge the terms of your business contract. The more you plan and address these “what ifs,” the less likely you may be to wind up in court. Think about what happens if one party on the contract passes away or closes a business, for example. Consider whether your contract is going to self-renew, review periodically or what have you, and address these matters accordingly within the contract.
A comprehensive, carefully thought-out business contract takes time and effort to create, and you may find yourself eager to get the ball rolling before you fully execute one. However, having a solid business contract in place from the outset may help you or your business avoid potentially expensive litigation later on.