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Why Contracts Are Important for Your Business

As a business owner, you understand that contracts and agreements are necessary in order to operate successfully and efficiently. But, like many business owners, you may dread the thought of drafting and reviewing a contract—and you might even be a little hesitant to entering one…

Business Litigation AttorneyThe time it takes to draft a contract is often prohibitive. And when you are presented with a contract to review and sign, you may be reluctant to place yourself and your business on the hook for something you do not fully understand.

Here are a few examples of contracts that are too important to overlook:

Leases

As a business owner, you likely lease space in order to store inventory, files, and even maintain your daily operations. If you are a larger business, then you may have an office at one location and a manufacturing facility at another.

You may have even have a satellite office in another town or state. If your business owns property, you may lease space to other commercial or residential tenants.

Lease Terms: Whether you rent space—or rent out your space—leases are critical in establishing and maintaining a landlord-tenant relationship.

The most common terms of a lease include the rent amount, its due date, and the duration of the lease. However, there are many other terms and conditions that are also very important.

An example of one such important term deals with the scope of what can take place on the leased property.

For example, do you want to manufacture a product in your space? Do you want your tenant doing so? Make sure you know exactly what is and what is not allowed on space you lease for your business, or space you lease to tenants.

Supplier Agreements

If your business relies on suppliers, vendors or even independent contractors, then it is crucial to establish agreements between the business and each and every supplier.

Who is Considered a Supplier? A supplier is any individual or entity that works with your organization to perform a service or deliver a good. Your agreement should set forth the nature and extent of the services the contractor will provide, as well as terms of payment.

While it is important to document a list of expectations and specifications, it is just important to put these expectations in a formal agreement.

If an issue ever arises between your business and one of your suppliers, then your agreement will govern the dispute and should provide appropriate protections for both parties.

Parntership Agreements

Starting a business is a big deal. Starting a business with another individual, who will essentially become your “partner”, is an even bigger deal. But why?

Many friends and colleagues who have similar interests and work ethics will sometimes dream of going into business together. And while it’s easy to trust a friend or someone you’ve worked with for a number of years, this doesn’t always mean a business partnership will work out.

This is why it’s important to draft a partnership agreement if you decide to go into business with another individual.

A partnership agreement will clearly outline the duties and responsibilities of each partner and may even address an exit strategy for each should one partner decide to leave the business.

How a West Palm Beach Business Litigation Attorney Can Help

A business litigation attorney will be able to help you negotiate, draft, and review any contracts for your business before you sign on the dotted line. In any and all of these cases, a good contract will provide you with the greatest amount of protection, if and when a breach of contract occurs.

Don’t hesitate to reach out to a business litigation attorney to get the advice and counsel you need when it comes to your business’ contracts.

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