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3 effective strategies for preventing contract disputes

When it comes to protecting your business and lifeblood, a well-worded, carefully drafted contract can go a long way. Conversely, a business contract that leaves anything open to interpretation can come back to bite you, potentially opening the door for someone to argue against its content or intent.

There are, however, several things you can do when creating your contract that may help you and your business avoid potentially damaging and financially draining contract disputes. More specifically, when creating a business contract, know that it may serve you well to:

Have the contract notarized

Having a notary sign your business contract can give you an extra layer of protection if a contract dispute arises. There are two major benefits to taking this step. First, the person who signs the contract will be unable to claim that he or she never did so if a notary was present at the time. Second, having a notary present may make the party reading the contract more likely to comb through it thoroughly before signing it.

Foresee potential problems

When putting together a business contract, ask yourself: Are there situations that may arise that would nullify its terms? Does the contract self-renew at set intervals? Asking yourself these important questions and then addressing them in your contract can potentially save you considerable time, stress and hardship down the line.

Verify who signs it

It is also important that you make sure that the person who ultimately signs your business contract is legally able to do so. Otherwise, you run the risk of having the person signing it misrepresent his or her identity, which could potentially render the entire contract void.

Contract disputes are a complicated, but relatively common, part of conducting business. The more time and attention you devote to creating your contract in the first place, though, the lower your chances are of having its contents come back to bite you.

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