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Business Law Contracts and Agreements Can Prevent Later Headaches

Posted on in Small Business Taxes

Contracts and other types of business agreements, when drafted thoughtfully and properly, are wonderful tools. In addition to stating in writing what services or products will be provided and at what cost, well-drafted contracts and agreements also describe additional terms including time frame for delivery, how the contract can be extended or terminated, and provide an outline of how, and under what laws, disputes will be handled .

If handled correctly, contracts and agreements are negotiated fairly and ultimately serve to protect the interests of both parties. Unfortunately, problems with contracts can arise for any number of reasons, including the following:

  • The contract might be "off the shelf" and not tailored for the transaction or type of business;
  • One party drafted the contract and the other party wasn't given an opportunity to review it before signing;
  • The agreement might not cover all of the products or services agreed upon by the parties;
  • The party who drafted the contract left certain sections blank, to be filled in after getting signatures

Problems can also stem from cancellation of an agreement. Depending on what type of services or products are going to be provided, California law may provide for cancellation periods if a buyer changes their mind about the agreement. If one party tries to exercise such a right, the other party is legally required to honor requests made in accordance with the law's requirements (in the time frame and manner provided by law).

A common source of contract disputes has to do with contracts for home improvement services. For additional information specifically about agreements with contractors in California, see the California Department of Consumer Affairs website.

If you are involved in a dispute with an existing contract, or if you have a need to have a new contract or agreement professionally drafted, contact us.

Tagged in: Business Law Contracts
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