Nearly 90% of all U.S. companies are involved in litigation at any given time, and cases related to contract disputes are the most active areas of litigation. The frequency of contract dispute litigation is partially due to the prevalence of generic contracts that leave businesses vulnerable to conflict with employees or partners. If you are a business owner, read below to learn why a Texas business lawyer should review your contracts to better protect your business.
Contracts Protect Businesses and Employees
Contracts provide written clarity for business operations that protects both business owners and employees by limiting the risk for future litigation. From employee expectations and compensation guidelines to dispute resolution and management structure, business contracts promote understanding and transparency in a business. While business owners create contracts to minimize their liability and prevent future litigation, employees depend on contracts to understand and protect their rights in relation to their employers.
Airtight Contracts Can Save Your Business Money
Investing in a contract drafted by an experienced business attorney in the early stages of your business can save your company money in the long run. A vague contract or a generic template pulled from the Internet containing terms you don’t understand can lead to disagreements among employees or business partners, which can result in costly litigation or mediation. Well-written, thorough contracts serve as an insurance plan for your business and prevent businesses from spending thousands on litigation as a result of unclear contracts.
Contracts Limit Ambiguity
Contracts limit ambiguity by establishing clear roles and responsibilities for all members of a business. While contract templates commonly found on the Internet use ambiguous language to apply to as many businesses as possible, companies often find that this ambiguity may lead to disagreements, misunderstandings, and lawsuits. Clear language used in a contract developed specifically for your business promotes understanding and minimizes the risk of disputes that might lead to litigation.
Contracts Can Outline How Disputes Are Handled
Disagreements between employees, managers, investors, and creditors occur regardless of a company’s success. These disagreements become extremely problematic when a clear process for resolution does not exist. Well-developed, airtight contracts provide a clear outline of how disputes will be handled when they arise between those invested in the business. As a business without these established processes leaves itself open to risky and costly litigation, properly organized business contracts describe a thorough process for resolving disputes between invested parties.
Unenforceable Contracts Can Destroy a Business
Even though a contract may be wordy and appears to have terms necessary to run a business, in a dispute one party may assert that the contract is unenforceable for one reason or another. Contracts may be considered unenforceable in court for a variety of reasons, from misrepresentation or fraud in the inducement, to failure or lack of consideration, waiver and mistakes in contract wording. To limit the risk of getting caught in an unenforceable contract, work with an experienced business lawyer to write or review your contract.
Is your business ready to invest in airtight contracts to protect your company? Work with Dallas business lawyer, David Ritter. With over 25 years of experience as a commercial business and contract dispute lawyer, David Ritter has the expertise to work with your business and protect your interests through airtight contracts. Whether you are interested in a contract dispute lawyer for an ongoing conflict or your business is taking proactive measures with an attorney-reviewed contract, you can rely on Ritter Spencer, the best Dallas law firm for your business. Contact us today with any commercial litigation or contract inquiries.