Handling a business contract or agreement isn’t always easy, and there are often many challenges involved. If you are wondering how to make the process and management more efficient, be assured there are ways in which we can help.
What is a Business Contract or Agreement?
A contract is an agreement formed by two or more parties that can be legally enforceable by courts. It is a legally binding contractual agreement regarding the exchange of the sale/ purchase of goods between the parties.
Helpful Tips to Handle Contract Challenges with Ease
In order to avoid contractual problems that may arise, below are a few guidelines that will assist with challenges:
- Be clear. Use simple language, and clear headers. Put each subject in its own place. This will allow for an easier to flow structure when discussing contractual obligations. Standardize language and use templates. This creates consistency and minimizes risks. It also saves time and money by increasing the understanding of contract obligations, reducing unnecessary negotiation. Using less legal jargon and more simple language which will allow the contract to be more “user-friendly.”
- Keep the contract short. Focus on the terms and business that is most important. This makes the contract more understandable, keeping the negotiation costs down and has closing on a contract in a more reasonable amount of time. Use correct legal names of all parties and all businesses involved in the contract. Check suffixes like “Inc or Ltd”. Having these things correct from the beginning will save time and money, as if anything is incorrect you will have no legal recourse.
- Review your contract process and create goals. Take effective steps by documenting what is working and what is not. Take that information and make clear goals for improvement. Knowing why you need to either reduce or drive costs, reduces the level of risks or increasing your business visibility, will help you with improving your contract management program. Review your process often. Many businesses do it on a monthly, quarterly and annually basis. This allows you to make changes when needed, and take care of issues as they come up.
- Pay attention to details. Include important details for all parties. Add any clauses of importance, such as confidentiality, ways of handling disputes, and termination.
- Use reminders and tasks. Although a simple concept, having reminders is important to staying on track and on time. Even with emails or spreadsheets, things can still get overlooked during busy times. Find an email tool that uses calendaring or tasks. Set a reminder on the calendar for whatever item you need to work on. This will help keep things flowing and on time, as well as allowing for an open communication between parties.
Overall, it is important to remember you need to be clear and concise, engage, have all parties involved, focus on the whole picture and be flexible.
Minhas Lawyers LLP is a multi-practice law firm based in Mississauga. We advise and represent clients across various segments and practice areas.
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