Contract disputes are quite common in business, but they also cost today’s business owners considerable time and money. Part of the reason contract disputes are so common is because the contracts themselves may leave things open to interpretation. Thus, exercising extreme care when wording your employment contracts may help your company avoid potential litigation.
Here are several other actions you might want to take to decrease the odds of your business getting embroiled in costly contract litigation.
1. Consider the future
When drafting your contracts, consider how future variables could affect them. Address what happens when one party signing the contract dies, or when a business included in the contract folds. Also, think about the duration of the contract. Do certain circumstances make it void? Does it auto-renew every so often?
2. Avoid vagueness
Because so many contract disputes arise because of misinterpretations of the material contained in the contract, you want to be as clear as possible in how you word it. Avoid language that leaves things open to interpretation, such as saying work must be “quality” or that it must undergo completion “soon.”
3. Call in a notary during signing
You should also make sure a notary witnesses and acknowledges the signing of your contract. Having a third party verify the signing of the document prevents disputes that could arise out of one individual claiming he or she never signed it in the first place. It may, too, encourage everyone who has to sign the document to read through it thoroughly and develop a clear understanding of its terms.