A good contract is crucial when making business deals. When your contract is good, then it can lock down your deal and benefit both parties. However, if you are not careful, you can completely ruin a contract.
When you make mistakes with a contract, you are more likely to end up in the middle of litigation. According to Forbes, there are a few key ways that you can hurt your contract.
Ignorance of law
One major piece of advice is to always be mindful of the law. You could have a precise contract and if you ignore the law, then the contract is not worth anything. In fact, your business could wind up guilty of violations if your contracts do not follow the letter of the law. Before you draft the contract, ensure that you understand the laws involved.
Poorly written drafts
Be careful of how you write your drafts. Nowadays, there are a lot of deals that individuals and businesses carry out over text message or email. This can be dangerous and lack all contract formalities. You do not want to have a contract that is ambiguous or difficult to understand. These contracts are easy to throw out.
Selfishly designed contracts
Often, a selfish contract does not go according to plan. Not only will other businesses cease doing business with you, but if someone takes you to court over your contract, the court may throw out the contract entirely. The courts can claim that your deal is unconscionable. This frees the other party from having to abide by the agreement.