Manage Your Business’s Contracts Effectively
As a business owner, you are likely going to have to work with contracts. These range from general employment agreements, severance plans, and even non-compete agreements.
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A valid contract is a safety net, something you know if you can rely on. But this peace of mind only comes from a properly drafted agreement. When executed correctly, it is legally binding. If there are disagreements in the future, you have a rock to fall back on—something objective that offers an already agreed-upon resolution.
Can you make your own contracts and not have them reviewed? This is your decision. But what happens when you learn that your contract isn’t admissible in court? Even if it is, is there room for interpretation? Is there any sort of gap that allows the person you’re having the dispute with to say the contract reads in their favor?
Contracts alone don’t give you peace of mind—effective, well-written ones do.
Reasons To Create Contracts
Beyond what we have already discussed, there are reasons why you could create a contract. You should also always strongly consider having an attorney review them for you. Have your contracts work for you to where they express your intent and protect your interests.
Further, even if this is not something you want, nothing says you can’t have an attorney review a contract for a specific reason or issue.
Entrepreneurs who develop software or intellectual property (IP) may seek funding or investments. If you receive an offer and a contract, you can have an attorney answer a question you have. For example, how much ownership do you still have in your IP if you sign?
If you are hired by someone asking you to sign a non-compete agreement, your lawyer can explain what this means. Furthermore, you will leave with an understanding of how it impacts you and any future decisions you make. If you sign, are there any current business arrangements that will have to cease?
Consider Your Needs
Established business owners might already have a firm understanding of what they need. Whereas a new entrepreneur might need to create a contract, someone else might need one updated or edited.
Unlike larger companies, smaller businesses won’t likely have in-house counsel. But that doesn’t mean you can’t establish a strong relationship with an attorney who works with you and your business. The right attorney can become a sort of business advisor.
Maxwell Dunn is more than a group of business attorneys—we are trusted advisors for you and your business. We are passionate about getting to know entrepreneurs and businesses while watching them grow. If you seek a professional business law attorney who can protect your company, contact Maxwell Dunn to schedule a consultation.See all videos