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Using communication to prevent breach of contract

On Behalf of | Jul 16, 2021 | Business Law

One of the most common reasons for a contract breach is a lapse in communication. Prioritizing open and honest communication may prevent costly contract disagreements from disrupting successful relationships.  

Early on, during the negotiation process, establish clear expectations regarding everyone’s responsibilities. Verify everyone’s understanding prior to signing any official documentation.  

Use precision

Unlike other written documents, your contract can have as much length as needed to accurately describe the relationship and its terms. Using precise language will reduce the chances of confusion or personal interpretation. You may consider having all parties read through the contract draft to verify that everyone agrees on the meaning of the content. If certain participants do not understand technical language, use mindfulness to make sure that the content is not too advanced.  

Use drafts

A well-written contract will take time to write. According to Harvard Law School, the mirror-image rule applies to business contracts. Essentially, this rule says that the contract you ask the other party to sign should exactly mirror any verbal conversations and agreements leading up to the formal creation of the contractual relationship.  

Using a draft system and carefully narrowing down the content until it meets everyone’s requirements can help you verify the document’s accuracy. Once you complete the final draft, have everyone look over it one more time to verify it meets their expectations before everyone signs. Your vigilance in creating a structurally sound contract may protect you from legal action if the other party alleges misconduct or noncompliance on your part. A well-written contract can provide evidence of your compliance and your effort to inform everyone of their responsibilities prior to the relationship’s creation.