1. Home
  2.  » 
  3. Contract Disputes
  4.  » 3 tips to help avoid contract disputes

3 tips to help avoid contract disputes

On Behalf of | Aug 5, 2020 | Contract Disputes

From business formation through expansion, the strength of your organization’s contracts is the cornerstone of success. Developing and maintaining clear, efficient business contracts is crucial to building relationships with vendors, suppliers, partners and employees.

Unfortunately, numerous errors or missteps can undermine a contract’s effectiveness leading to disputes, disagreements or even litigation. You should work with an experienced business law attorney to ensure your contract is clear and your goals are protected.

Here are three things to remember when drafting a new contract or reviewing an existing one:

  • Include the breach terms in every contract: Each contract must include clear language stipulating what constitutes a failure. A breach of contract exists when terms of the agreement are not upheld – a missed delivery, not creating the agreed-upon specifications, a failed time-frame. This type of language should be included no matter the scope of the contract.
  • Define the breach remedies: It can be something as simple as a revised delivery schedule or as complex as new product specifications, but the breach remedies must be included in the contract. By defining both the breach and the consequences, you remove any vagueness or language that encourages dispute.
  • Do not confuse the terms of a contract: It is not uncommon for an organization to have multiple contracts with the same vendor. Additionally, the organization might have similar contracts with numerous vendors. It is crucial that each contract clearly remains a separate entity preventing the confusion of terms, provisions, conditions or penalties.

The best contracts contain clear language that stipulates not only the expectations of both parties but also the consequences of a breach. When one party fails to perform on time, does not perform in accordance with the terms in the contract or does not perform at all, the agreement has been breached.