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Crafting a business contract

Contracts play an integral role in many different areas of life, but especially in business. A poorly constructed business contract can lead to unnecessary challenges for business owners in Georgia, so it is essential to be mindful during drafting. Even contracts for seemingly minor business matters require careful consideration and forethought.

Is it a contract?

A contract is a legally enforceable agreement between at least two parties. It is important that everyone involved have a clear understanding that what they are signing is indeed a contract. For this reason, clearly titling the document with “contract” can clear up any potential misconceptions. Additional steps to avoid potential problems include:

  • Checking that all names are correctly spelled
  • Including common sense headers throughout the document
  • Numbering the paragraphs
  • Defining technical terms
  • Initializing each page after reading

There are also certain things one should avoid when creating a strong contract. While legal documents might have a reputation for being confusing, it is generally a good idea to avoid difficult words or overly long sentences. Being repetitive also only serves to further convolute the meaning of the contract. Additionally, one should also avoid:

  • Reviewing the contract in a hurry
  • Agreeing to a modification without having it in writing
  • Accepting oral revisions or agreements

Many businesses in Georgia rely on contracts for their day-to-day operations. When a business contract is not clear or leaves room for interpretation, it could put those operations on hold. Ensuring that a contract is clear and legally enforceable should be a priority for all business owners.