Another common mistake made in DIY contracts is not including all of the necessary provisions.
An off-the-shelf contract solution from an online document provider can give the impression that executing contracts is little more than a fill-in-the-blank exercise. Contracts with boilerplate or standard provisions may be a starting point. But every contract must contain provisions tailored to the particular deal.
Even if a nonlawyer can adapt the boilerplate provisions to their situation, the bigger mistake could be neglecting to include provisions that are often absent from the template, such as the following:
● If the parties are from different states, in which forum will legal disputes be handled (i.e., a choice of law provision)?
● The party that breaches a contract may have a contractual duty to pay damages to the other party. But what type of damages (e.g., liquidated damages, attorney’s fees, etc.) and remedies, such as specific performance or the ability to terminate the contract upon default, are actually available in the contract?
For business contracts, missing provisions—including prices, delivery dates, product specifications, and delivery locations—can be filled in by default terms provided in your state’s version of the Uniform Commercial Code without voiding the contract. But relying on the default terms provided by state law to fill in the gaps is never an optimal choice. A better option is to have a lawyer draft the contract to include all necessary provisions or review an existing contract to address any missing provisions, terms, or elements.
Book a Business Development Planning Session by visiting http://www.reidcouncillaw.com or give us a call at (215) 258-4620 to learn how Reid Council Law Firm can draft contracts tailored to your business needs.