When it comes to potential legal concerns, it pays to be proactive. This is especially true when it comes to contracts, which commonly form the bedrock of any business relationship, be it between a company and vendors, suppliers, distributors and even customers.
Business leaders in New York need to understand the basics of contracts and how they can help prevent legal problems before they come up. For starters, the basic concept of a contract is fairly simple: each party agrees to do one thing in exchange for the other party doing another thing.
The most common type of agreement is probably the cash-for-service type of contract: If you do something, I’ll pay you this amount.
However, the heart of any contract can vary widely. But, the bottom line is that a contract is legally enforceable, which means that if you sign a contract, you are potentially subject to legal action if you do not fulfill its terms and obligations.
That is why our readers have probably seen contracts that a quite long – there are all kinds of details that need to be a part of most contracts. And those details, while they may seem like legalese to some people, are the very parts of contracts that can help prevent disputes before they happen.
For example, the parties may agree to a dispute resolution clause, which can set the stage for avoiding litigation when disputes arise. There can also be “notice” sections, in which both parties agree to notify each other immediately if there are any perceived issues of non-compliance with the terms of the contract. Those are just a couple of examples. Your legal needs are unique, so be sure to get the right information about contract language that can best serve your company and its stakeholders.