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How Thorough Contracts Can Help You Avoid Expensive Litigation

Well drafted business contracts are crucial to the protection of your interests. They provide clarity regarding your arrangements with another party and make your business agreements enforceable. Typically, just putting your agreement in writing can go a long way in preventing disputes from arising due to a misconception about each party’s responsibilities.

Any business that regularly enters into contracts will eventually have a need to use the civil court system to enforce their rights. Breaches do occur occasionally, and often the other party will be willing to work with you to resolve them. When they are not willing to remedy their omissions or other breaches, then you may have no choice but to take legal action.

The process of litigating a contract matter can take months and do damage to your working relationship with the other party. Luckily, having a well drafted, clear and concise contract makes litigating these issues much less time consuming and expensive. Further, drafting thorough and highly specific contracts can go a long way toward helping you avoid litigation altogether.

Why not just use boilerplate documents?

Whether you need to hire a new worker or solidify an agreement with a vendor, there are almost certainly boilerplate contracts that you can find online that will apply to your situation. The problem with simply filling in a few details in a pre-existing document is that it won’t adequately address your specific needs or protect your business. Every contract is unique in that it exists to meet the needs of very specific situations. Likewise, your contract needs to be specific to your needs.

Generic documents may leave much to the interpretation of either party. If you have conflicting expectations, you and the other party might eventually disagree about whether each of you has upheld the agreement.

Custom contracts will help you avoid messy disputes

The more thorough and customized your business contracts are, the less likely it is that you will have major disagreements with the other party or that you will disagree about whether a breach occurred. When you draft unique contracts for each new employee, service provider or vendor, you have an opportunity to clarify your expectations for the other party and what you intend to provide for them.

Your contract could also be a place to address failures by either party, including delays in making payments or in product delivery. Imposing penalties that are appropriate given the circumstances may reduce the chances of an unintentional breach. Potential penalties can be a profound motivator for some. Creating thorough business contracts can be a way to reduce conflict and protect yourself when issues do arise.

Drafting effective and thorough contracts is important for any business, but can be very difficult. That is why the attorneys at Gudeman & Associates work hard to ensure your interests are well protected.  Contact us today to schedule a free 30-minute consultation.

Let’s Talk AboutYour Financial Future. Call For A Consultation.

For trusted help in matters of bankruptcy, estates, business, taxation or real estate, we encourage you to contact us for a no-obligation consultation. During our first meeting at our Royal Oak office, over the phone or via videoconference, you will be introduced to your main point of contact who will work closely with you throughout your case. We will take the time to listen to your story, answer your questions and develop a plan for success. No judgment, just advice geared toward your financial goals backed by decades of experience.

Please call 248-927-2755 or send us an email to learn more or to schedule an appointment. We look forward to serving you.

Gudeman & Associates, P.C.

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1026 W. Eleven Mile Rd.
Royal Oak, MI 48067


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1026 W. Eleven Mile
Royal Oak, MI 48067

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