When it comes to running a business, there are a lot of written contracts that will come into play. Some business owners will often use a handshake or a verbal nod and leave it at that. However, this is where many businesses go wrong. In order to fully protect your business, your business deals must be in writing. This is particularly true when you are dealing with the following three types of activities:
Business Deal #1: Employee Hiring
You may not think that you need a formal agreement when you hire employees, especially if they're family members or friends, but you could be potentially putting your company at risk. An employee contract is going to outline expectations of the employee as well as any procedures regarding terminations. This will protect you in the event that the employee needs to be fired in the future or that the employee decides to pursue a lawsuit against you later down the road – because, yes, even friends and family will do that to you.
Business Deal #2: Partner Agreements
It isn't uncommon for business partners to enter into a verbal agreement when going into business together. However, when this happens, there isn't anything to back up what was said. This can create a host of problems later on. Therefore, you always want to make sure you get everything in writing. On the other hand, contracts don't just protect you from other people's misbehavior. You may want out of the business because you are sick, retiring, or moving across the country You'll want to make sure that there is a written agreement that states what will happen to your share of the business if you should want out.
Business Deal #3: Commercial Leases
You should never rent a commercial office or business space without a written contract. At minimum, a commercial lease is going to specify not only how the space can be utilized, but it should also outline what types of changes are allowed to be made to the space during the term of the lease.
All of these business deals are crucial to the successful running of your business. For that reason, it is important that you have a professional attorney look over the written contract agreements before you sign them. You want to ensure that they have been properly drafted and that nothing is amiss. Alternatively, if you are supposed to draft the agreements, you will want an experienced lawyer to draft the agreements for you or look over the documents that you have prepared yourself to ensure that you have not missed anything.Share