Litigation takes time, money and attention away from your business, and it may have a large impact on your business’s bottom line. Contract disputes are common in business, but there are a number of actions you might take to reduce their likelihood and help protect your entity.
According to Inc.com, taking the following three steps should help lower the likelihood of your business getting involved in a lengthy, contentious and costly contract dispute.
1. Verify the correct parties sign your contract
Having the wrong party, or a party who lacks proper authorization, sign your contract is an easy way to have a judge throw it out or consider it void. Make sure those who sign your business contracts are who they say they are and that they have the authority to agree to your contract’s terms.
2. Have a notary there when signing
Always have a notary present when you and others sign your contract. This prevents anyone from claiming they never did so. It also raises the chances of everyone signing the contract reading it closely and developing a thorough understanding of its contents.
3. Address potential future variables
Address what happens to your contract when something unexpected occurs. What happens if one of the parties who signed it leaves a business or dies? Does the contract renew every so often, or do you have to revisit and update it at regular intervals? Accounting for future variables may go a long way as far as helping you avoid contract disputes.