You can measure the success or failure of a San Diego business in large part by the quality of its business contracts. Contracts establish the agreements between the parties, and the rules for how transactions and relationships will work. This applies to suppliers, vendors, employees, customers and even the owners, members or shareholders of an LLC or corporation.
The corporate contracts connect all of what a business is and does. If you download these critical documents from a website or attempt to create or modify them yourself, you are placing your business in harm’s way. An effective contract provides a strong road map from the beginning of a transaction to the end. It clearly establishes what each party will do and when. It establishes the goods or services to be exchanged, the value of the exchange and how that is to be paid. A well constructed contract will also anticipate potential challenges, and provide resolutions for those in advance.
I’m constantly amazed at the (lack of) quality and substance in the business contracts I am presented with by the vendors with whom we work. At Allen Barron, we carefully counsel all of our business clients about the nature of contracts, the critical ingredients and clauses they must contain, and the point when it is better to walk away from a transaction instead of signing a bad agreement. Business contracts predict the success or failure of a San Diego business
You’ve worked so hard, spent hours and hours of your life, and invested your own money to start and build your company. Why would you risk all of that to save a few hundred dollars on a contract you can use over and over? Critical documents like the operating agreement in an LLC and the shareholder’s agreement in a corporation should never be downloaded from a site.
California has unique laws that are rarely addressed by downloaded forms, or contracts you find on the web. In California, preferential treatment is given to minority ownership unless the corporate documents and operating agreements specifically state otherwise. This is not in the interest of most entrepreneurs, and that is just the starting point.
We invite you to contact the experienced contract and business attorneys at Allen Barron to discuss your standardized business contracts, and to review substantial agreements that will commit your company to major transactions or relationships. Business contracts are a predictor of the success or failure of a San Diego business. Make sure your business contracts successfully guide each party through your business transactinos. We invite you to contact us or call today to schedule a free consultation at 866-631-3470.