Why Does Wording Matter in Business Contracts?

wording, Wheaton business contract lawyersMost people were taught at a reasonably young age to be sure to read anything they sign, especially documents that create a contractual relationship. If you own a business, you probably realize the importance of doing so now more than ever. The reason is simple: the wording of your contracts matters a great deal. Moreover, the way that a contract is worded is crucial to the enforceability of the agreement. One misunderstood clause or provision could cost your company thousands of dollars, and the contract might not be enforceable in the way that you understood it to be.

How Poor Wording Can Cost Your Business

Nearly all business transactions are guided by some type of contract, including those between you and your suppliers, your clients, and even your employees. The reality is that poor wording or confusing language in a contract can put your company at risk in just about every way you can imagine. You could face legal action for failing to meet your customers’ expectations. You could find yourself on the short end of deals with your suppliers. You could even be facing wrongful termination lawsuits and other litigation related to your employees.

Key Elements of Business Contracts

Each contract is going to be different, as various types of contracts are used to serve specific purposes. For this reason, you should work with a qualified business contact attorney before signing any agreement with a partner, distributor, supplier, employee, customer, or client. This can allow you to be sure that the wording of the contract does not put your company at risk and that you did not overlook any elements that should have been included in the contact. Such elements may include, but are not limited to:

  • Clear verbiage in simple language to reduce misunderstandings;
  • A section that defines the terms as they used in the agreement;
  • Warranties, limitations, and exclusions that are applicable to specific products or services;
  • Limitations on liability or liability exclusions, as appropriate;
  • Provisions on how disputes regarding the contract;
  • A provision that releases both parties from the contract if unforeseen circumstances should occur; and
  • All relevant details about the services and products, such as pricing, payments, interests, and penalties.

Contract Review Is Crucial

Whether you have drafted the contract yourself or the contract was drawn up by the other party, you should always have it reviewed by your lawyer before you sign it. Your attorney can help you identify possible areas of concern and can propose changes that might need to be made to protect your best interests.

Call a Wheaton Contract Lawyer for Help

At Stock, Carlson, Oldfield & McGrath LLC, each of our attorneys has over 40 years of legal experience, and we are equipped to help you with all of your business contract concerns. For guidance with drafting a new contract or to have a contract reviewed, contact an experienced DuPage County business lawyer at our firm. Call 630-665-2500 for a confidential consultation

 

Sources:

https://smallbusiness.chron.com/write-contract-verbiage-17516.html

http://www.forbes.com/sites/allbusiness/2013/10/03/big-legal-mistakes-made-by-start-ups/