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4 ways to strengthen your business contracts

On Behalf of | Jun 27, 2023 | Business and Commercial Law Defense

Written agreements are no doubt an integral part of your Oklahoma business. The last thing you need, however, is to be dragged into court when someone with whom you’ve entered an agreement files a lawsuit against you. Knowing how to strengthen your business contracts from the start helps avoid confusion and disputes down the line.  

It’s always helpful to ask someone who is well-versed in Oklahoma business laws to review your contracts before signing them. This way, if there’s a problem, you can simply revise the agreement and go from there, rather than risk a dispute later that could require weeks, if not months, of your time to resolve in court. There are several things to keep in mind to strengthen your business contracts. 

The simpler, the better for business contracts 

It’s imperative for all signature parties to clearly understand the terms and implications of a contract before signing it. Using the most basic vocabulary available to establish terms of agreement helps avoid problems. Sophisticated jargon can be difficult to understand, which opens the door for misinterpretation and disputes.  

Simple doesn’t have to mean vague 

In addition to using simple terminology in a business contract, you’ll want to make sure an agreement is as detailed as possible. For instance, do not leave issues like pricing or completion dates up in the air. Make sure terms are fully detailed and that all parties understand and agree to them.  

Sometimes, one or more entities might need to back out of a contract 

Another issue to keep in mind when your goal is to strengthen your business contracts is that every solid contract includes terms for terminating the agreement. It’s not often that two or more parties enter a perpetual agreement, meaning a contract that never ends. If more than two people are involved, it might be possible for one to terminate his or her part of the agreement, while leaving the rest of the contract intact.  

Never sign a contract without clarifying state laws first 

Every state, including Oklahoma, has its own business laws. To avoid disputes associated with business contracts, it’s helpful to list the state laws in a contract that govern a particular agreement. This way, if a disagreement arises, you have all relevant laws on hand, in writing, right in the contract.  

If someone files a lawsuit against you because of a contractual agreement, it is best to try to resolve it right away. Any type of contract dispute is going to disrupt your business because it requires your focus and effort, which means you will be unavailable at those times to manage the rest of your business. Support is available for anyone in need of guidance regarding building a strong defense against a business lawsuit