Contract disputes are quite common in business, but if you find yourself involved in one, it may cost you quite a bit of time and money to fight it. You may be able to avoid many contract disputes by exercising due diligence when creating and signing your business contracts, which may help you protect your own interests and profits.
According to Inc., the following strategies may help you avoid costly and timely contract disputes.
1. Sign with a notary present
Having a notary there when everyone signs a business contract may help prevent contract disputes in two important ways. First, it makes it much tougher for someone to claim they did not sign a document when a notary saw it happen. Second, the presence of a notary may make those signing the contract more apt to read through it thoroughly. The more they understand about the contract’s terms, the lower the chances of a future dispute.
2. Verify the identities of all involved
Make sure anyone who signs your contract has the proper authorization to do so. If the person who signs the document never had the authority or legal standing to sign it in the first place, he or she may be able to argue that it was never valid at all.
3. Plan ahead
It is also important to address “what ifs” when drafting your business contract. Consider whether the contract automatically renews or terminates on a particular date. Address what should happen if anyone who signs the contract retires, passes away or leaves his or her company. The more you plan ahead and consider potential future variables, the better your chance of avoiding a contract dispute.
Find more about enforceable employment contracts on our webpage.