In business, contracts are vital for any transaction as proof that an agreement occurred. As an entrepreneur, it is important to note how valuable contracts are instead of seeking other less-expensive options, like a do-it-yourself (DIY) contract.
To explain, some business owners may attempt to draft contracts themselves using a template found online; although this may seem convenient, they run many risks, such as:
- Drafting a DIY contract that is not enforceable.
- Lack of legal knowledge can result in drafting a contract that is unenforceable in court. Because certain laws differ in each state, one contract does not apply to all states; in other words, a contract that is suitable in one state may not be suitable in another state. For instance, a non-compete provision in an employment agreement may be enforceable in Miami but may not be enforceable in California. If this employment agreement was intended for use in California, then it has no value and is ineffective.
- Drafting a DIY contract that excludes important conditions.
- A less costly DIY contract can accidentally result in an omission of important legal terms and clauses that would potentially protect your business. Oftentimes, online templates are generic and are not customized with the contents necessary for your particular business. As a result, DIY contracts typically lead to agreements that do not properly support the business and its protection. An expert business attorney, however, understands the importance of a contract and has the resources and experience necessary to draft contracts that include the required provisions to protect your business.
Additionally, a contract can become unenforceable due to the ever-changing laws caused by legal updates on evolving case law. As a result, certain terminology in some contracts may need to be added, removed, or altered to remain enforceable. When using DIY contracts, these updates are often overlooked and can lead to out-of-date and unreliable agreements.
For a contract to be considered enforceable, there are a myriad of legal procedures that explain and determine the conditions that should be present. If such conditions are not met, the contract can be deemed unenforceable.
- Creating unintentional legal accountability.
- Strategic language is required when drafting a contract, and including or excluding terminology can inadvertently create legal responsibilities for your business. Since complex boilerplate language is often found in templated contracts, it can produce commitments that you may not be lawfully obliged to accept.
All in all, these risks can result in legal responsibility, lack of security, and expensive attorney fees. In other words, the money you can potentially save with DIY contracts is outweighed by the time and money that you may spend solving such problems.
Do You Need to Draft a Contract? We Can Help You
If you are interested in drafting a contract that can provide business protection, you need the guidance and assistance of qualified and experienced business attorneys.
At Jurado & Associates, P.A., we have the knowledge and expertise to help you make the best decisions for your business. Contact us today by phone at (305) 921-0976, by email at [email protected], or WhatsApp atĀ +1 (305) 921-0976 .
