No matter what business an individual is in, contracts are often at the center of all agreements. But having a bad contract with loopholes and unclear language can put Georgia businesspeople in a bind should a legal situation emerge. Here are a few tips for creating and maintaining foolproof contracts.
- Be direct: Indirect or unclear language can be interpreted differently by different people, which can cause legal trouble down the line. In addition to using clear language, having a legal representative walk each party through each part of the contract can prevent any misunderstanding.
- Avoid loopholes: If clauses in a contract are too general, the contract could work against one of the parties later on. Work with a lawyer to make sure each part of the contract is airtight, with no ability to back out on a technicality.
- Store it properly: After signing the contract, it is important to make sure both parties have a copy and that it is stored in a safe place where it cannot be tampered with. Storing it with a professional, such as a legal firm, is one way to help to safeguard it.
- Make sure it’s fair: If a contract is too one-sided, it could be met with skepticism by a court. It’s good business practice to make sure contracts are two-sided, with each party clearly stating their commitments to one another.
Contracts are binding, but it is not uncommon for them to need to be amended from time to time. This process should also be undertaken thoughtfully, with clarity and understanding from both sides. Every step of the way, from drafting the initial document to fulfillment, amendments, and/or renewals, has legal implications. For this reason, it is a good idea to work with a Georgia business lawyer when navigating contracts and related issues.