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Strategies for developing stronger business contracts

On Behalf of | Aug 31, 2021 | Business Law

Developing contracts constitutes a major part of running your organization. You want these agreements between suppliers, clients and employees to be enforceable and valid while accurately defining responsibilities on both ends.

According to Cornell Law School, for a contract to be legally enforceable, the following factors must exist; legality, capacity, adequate consideration, mutual assent, and valid offer and acceptance. Using the following strategies can help you develop stronger contracts that meet these defining qualities.

Put all agreements into writing

Even though some verbal agreements can bind you and another party, if something goes awry, these types of contracts can be hard to enforce. Lessen confusion and the potential for disputes by always putting your business agreements in writing.

Include necessary details

Take time to fully spell out the terms and conditions of your contract in complete detail. If you discover that you forgot an essential detail while reviewing a contract, have an amendment added to the document as soon as possible.

Add stipulations for termination

Even though you do not want to face the reality of a terminated contract, you should consider the possibility. Add a termination date to every contract and outline terms for what happens if either you or the other party defaults under the terms included.

You should also add terms to your contract that keep all information shared between parties private. The other party or entity that enters into a contract with your business should maintain confidentiality when it comes to anything they learn about your operations.