Contract Law

 Contracts play a pivotal role in ensuring that companies, employers, employees, and third party service providers are compensated fairly for their goods, labor, or services. In the event that an agreement is breached, the existence of a written contract can help protect the non-breaching party from suffering economic loss. Forming or enforcing a contract can be complex, but a contract ensures no party can claim misunderstanding later down the road. In the world of business relationships, contracts are important for the following reasons:

• Contracts provide a written document that outlines the full understanding of the business relationship and scope of the work so that no one can claim any misunderstandings.

• They specify exactly what rights are being purchased and what rights are being retained.

• They’re binding and legally enforceable.

• They protect both you and the client.

• They stipulate how and when you get paid, what needs to trigger that payment, and what recourses you have after any agreement is broken.

• They minimize risk.

A contract is a sign of professionalism and should inspire confidence, knowing that you take your business seriously. Any client who refuses to work with one should be treated suspiciously.  Any business relationship that works without some kind of writing is destined for serious problems. 

Contracts provide businesses and individuals with peace of mind as well as legal recourse in the event of a breach. Unfortunately, interpreting and enforcing contracts is difficult and many people are not aware of the protections offered by contracts.