One of the most import parts of business law is having a strong contract. The business law contract formalizes the agreement between two parties to prevent misunderstanding about key terms in the agreement.
Why are contracts so important? It’s key for both parties to have a valid and enforceable contract in case the contract needs to be enforced in court. Contracts can be oral or in writing. An oral contract is any agreement that’s not written but certain types of agreements are required to be written such as agreement to buy or sell real estate or land. This is called a statue of frauds.
The benefit of using a business attorney is that the attorney will cover all of the possibilities that may come up with business law contracts. The attorney comes up with a worst case scenario and designs a business law contract that will protect the client as much as possible.
One serious concern in business law is that a contract is written between two people but the variables change for reasons out of either person’s control. These variables may include acts of God such as hurricanes or other uncontrollable events. A good contract will protect you to ensure that you don’t end up in an ugly court dispute.
A good example of a well-written business law contract is a car purchase. When you buy the car, you’ll get a representation of warranty. If they don’t fulfill the warranty, they are in breach of contract. However, if the car dealership has a good attorney that writes clauses into the warranty that protects them. If you don’t do regular maintenance, the warranty is invalid. Other issues include misuse of the vehicle, environmental damage, an altered odometer and many other issues.
Attorneys often include a merger clause in business law contracts. In this case, the details of the agreement between the two people are in the contract. There are no side contracts or deals. This prevents people from lying. Another popular clause is choice of venue which designates where the case will be tried if there is a dispute such as arbitration or a court of law.