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What Business Owners Should Know About Contracts and Negotiations

On Behalf of | Dec 15, 2019 | Business Law

Businesses are only as successful as the contracts that bind their operations. While many business owners consider drafting contracts and negotiating them to be tedious, smart business owners know it’s important to pay attention to every detail. Each and every word matters and will influence the contract’s interpretation and legality. Both parties involved in a contract need to be satisfied with the final negotiation, so a contract that is thorough and whose terms deal with important contingencies is essential. That’s why a knowledgeable business attorney with experience drafting contracts and negotiating their terms is so important to your company’s ability to thrive.

Contract basics

A typical business contract is generated when one party offers to provide another party with a service or product for something of value in return, and the party receiving the offer accepts it. Contracts often include the following:

  • Intent to form a contract
  • Lawful subject matter
  • Offer made by the first party
  • Offer’s acceptance by the other party
  • Exchange of a product or service of value
  • A written agreement, in most cases

A contract is only valid when there is an exchange of something of value. Your attorney can help ensure that exchange is properly valued so that whether you are making an offer or accepting it, your interests are protected.

Essential considerations

The best contracts are those that can anticipate problems before they happen and protect your company’s ability to operate. A skilled attorney will take into account these important considerations when drafting a sound business contract:

  • Contracts should be written in a language that’s clear and that both parties can fully understand without misinterpretation. Avoiding unnecessary wording and technical jargon can help with clarity.
  • Contracts should be as detailed as possible in stating what each party is agreeing to in the negotiation.
  • Contracts should include straightforward terms, particularly regarding payment.
  • Contracts need to adhere to all pertinent state and federal laws.
  • Contracts should include confidentiality options for either party.
  • In the event of a lawsuit, the contract should include provisions for attorney fees, possible solutions, and arbitration and mediation clauses to prevent the need for a court’s involvement.

But even the most carefully crafted agreements can’t always satisfy all parties. It’s important to keep in mind that the other party could make a counter-offer to a contract prior to completion. The party could also revoke the offer at any time before acceptance. An attorney who is a skilled negotiator can help parties reach agreement without delays and disputes. But when disputes do arise, a lawyer who is skilled in negotiation and litigation can represent your interests in a settlement agreement or in court.

Frank Charles Miranda, P.A. represents clients in contract matters and provides civil litigation services for disputes. Please give our Tampa office a call at 813-902-3925 or contact us online to schedule a consultation today.