On behalf of Thaler Law posted in contracts on Tuesday, August 20, 2019.
Running a successful small business is not easy, which is why many California business owners often look for ways they can save time and money. One way they may do this is by using preprinted contracts when negotiating and formalizing business transactions. Simply printing off a pre-made contract seems like a good idea, but in reality, it may not be the best choice.
In simple and straightforward transactions or in situations where two familiar parties are repeating the same transaction again, a pre-made contract could work. Sometimes, all that is necessary is a simple explanation of the rights, expectations and benefits of both parties. In these cases, pre-made contracts could offer sufficient protection for both parties.
There are some drawbacks, however, to approaching business contracts in this way. In many situations, an agreement should be thorough and carefully detailed, spelling out the terms that are specific to the individual situation. This is not something that a business owner will get with a generic contract. There are many benefits to drafting strong and specifically worded contracts, particularly in high-stakes or complex transactions.
Business contracts are some of the most valuable tools that a California owner or entrepreneur has in his or her arsenal. Contracts are only as good as the terms in the agreement, and it’s worthwhile to make sure before signing one that it’s complete, thorough and reasonable. Failure to proceed cautiously can expose a business owner to an unnecessary risk for financial loss and the potential for litigation in the event something goes wrong.