Many business owners and entrepreneurs under-estimate the central role business contracts play in the success of a new LLC or corporation. Business contracts are the foundation of business itself. The structure of a business contract is often the only difference between a successful transaction, and a dispute leading to expensive and time consuming business litigation. If a business professional attempts to save a few dollars by downloading contracts from a legal forms site and modifying them, or simply copying forms off of the internet they risk not only the potential profits from the underlying transaction, but their business itself.
The founding principles of Allen Barron have owned their own businesses for decades, and have advised and provided professional services for countless others. One of the greatest mistakes a business owner can make is attempting to write their own business contracts. When a dispute arises between the parties, a court is only interested in the contract between the parties and the “benefit of the bargain” that was to be received by each. If the contract (written or otherwise) is incomplete or poorly constructed, the judge must oversee a process where attorneys representing each party argue each point in an attempt to quantify the actual agreement between the parties. The judge must ultimately piece all information together, and will issue a final ruling based upon their own experience as well as the information (or lack thereof) and evidence before them.
A strongly constructed business contract guides each party through the transaction smoothly. It should clearly establish the role of each party to the contract, and anticipate potential challenges that might arise and how the parties will resolve them. A well crafted business contract guides each step in the process until the transaction is complete and the parties have received the “benefit of the bargain.” Business contracts are not as expensive as most business owners believe, and the value of a well crafted contract is returned hundreds of times over when compared with the cost of a single dispute.
Contact the experienced business and contract attorneys at Allen Barron to review your existing contracts, or to craft new business agreements that will protect your hard work, investment and the years it has taken to establish and grow your company. We invite you to contact us for a free consultation at 866-631-3470.