Business arrangements often hinge on the contracts that outline the terms of the agreement. These written documents must contain specific information so that everyone knows what their duties are and what to expect from the deal. Most people know to include the specific points of the project, but there are some other clauses that provide widespread protections.
There are several areas of a contract that you should ensure are present when you’re presenting the document to a business contact. Each of these provides you with some protections, but some of these aren’t included in all contracts.
Many contracts need to have a force majeure clause, which will negate the contract if there is something that happens that isn’t in the control of either party. This provides some protection that might be valuable if there are things that might happen that are acts of nature.
Some contracts have an entire agreement clause, which negates previous conditions and agreements. It states that all applicable terms of the agreement are included in the current contract.
Contracts may also need an alternative dispute resolution clause, which can prevent disputes from turning into lengthy court battles. In most cases, this clause notes that disputes will be handled through arbitration so an independent arbitrator will hear both sides and made a decision about what needs to happen.
When you’re dealing with contracts for your business, it’s always best to have your attorney review them. This helps ensure that you haven’t missed any important points and that your company is well-protected. If a dispute comes up with the contract, your attorney can help you determine the course of action you should take.