Every small business will face legal concerns. Whether you need an expert to review new contract agreements and permits, or require legal counsel to assist with supplier or vendor disputes, it’s important to protect your company with professional small business support from KTF Law Firm.
We understand that as a small business owner, you have many roles to fill. From managing employees and recruiting new ones to monitoring daily operations, finances, production, and more, the one responsibility you shouldn’t have to cover is contract drafting.
Types of Contracts in Business
Though contracts will depend on your industry, line of work, and where you operate your business, the most common types of business contracts include:
- Non Disclosure agreements: This is one of the most common types of agreements, as it ensures confidentiality between businesses, contractors, vendors, etc.
- Contractor agreements: If your company outsources services to outside vendors or independent contractors, you’ll need an agreement in place to ensure scope of work and payment structures, among other essential items, are included in the document.
- General employee contracts: If you’re planning to hire a team to scale your business, you’ll need employee contracts in place that comply with all state and federal requirements.
- Indemnity agreement: This type of agreement will protect you, or another party, from any risk or liabilities associated with the agreement, should things turn south.
- Property and equipment lease: If you lease any property or equipment, this essential document will outline terms and conditions of use, as well as an agreed-upon payment plan.
When it comes to writing contracts, going it alone, or using template contracts online, can lead you on a dangerous path.
Common Mistakes in Contract Agreements
Below are a few examples of mistakes that can occur when a contract is drafted and signed between two parties—without the support of an experienced contract drafting attorney:
- Common Mistake: A common mistake occurs when both parties are in agreement but enter into a contract under the same misunderstanding. Common mistakes often occur when terms are discussed but not explicitly included in the contract. If contested, the contract would be void under a common mistake.
- Unilateral Mistake: This occurs when one party is mistaken about the substance of the contract while the other party takes advantage of this misunderstanding. In order for the contract to be considered void, the mistake must be in regards to the contract’s terms and conditions and one party must have been aware of this and used it to their advantage.
- Mutual Mistakes: A mutual mistake occurs when both parties misunderstand the intentions of the other party. In these cases, the contract is most likely to be considered void.
It’s no surprise that these types of mistakes will cost you money, time, and even the future of your business.
Avoid These Mistakes with the #1 Contract Tip!
To protect operations, employees, and the future of your business, you need to work with an experienced attorney who specializes in business and contract law.
At KTF Law, we’ve helped Minnesota business owners draft and negotiate contract agreements—as well as help them settle disputes. We take pride in helping business owners understand and create contracts every day to ensure they understand the agreements and feel confident and supported every step of the way.
Contact us today to learn more about our contract drafting services!