The Necessity of a Business Contracts Attorney
Your attorney should be a trusted advisor for your business. Someone you can count on to guide you through tricky waters. As a business contracts lawyer, I am committed to creating agreements for my clients that I know will work for them long-term and prevent those silly , costly and exhausting disputes that end up in court. Every business should have a business contracts lawyer on speed dial or be on retainer. Choose the right business lawyer; someone you trust, someone who keeps up with the law and who wants to understand your business model.
Common Services Provided by Business Contracts Attorneys
Business contracts lawyers play an integral role in the development and execution of governing agreements that further the ends of corporations and larger businesses. Business contracts are complex instruments that require an understanding of a company’s business practices, commercial and legal norms, and a number of other factors generally outside the control of a single company. New corporate entities and existing businesses that are crafting an agreement typically do not have the practical knowledge necessary to create a legally viable contract that will accomplish its intent.
Business contracts lawyers provide a variety of services in the drafting and review process. Their expertise is extensive, encompassing elements of contract language, the structure of complex agreements, and negotiation strategies. Legal defense of a company’s rights under the agreement is also vital to the overall value of their services.
The majority of the time spent by an experience business contracts lawyer happens before the creation of a governing agreement even begins. The lawyer must first identify the pertinent aspects of the company’s business practices that are relevant to the agreement, and then formulate a suitable method of expressing those practices in legal language. The lawyer may meet with various employees or executives to assess their needs, and will come up with an initial draft of the proposed contract.
The first draft of a business contract is often a collaborative effort between the lawyer and the company, as the lawyer must craft language that effectively conveys the intent of the company. This process can be lengthy, as the company may not be able to articulate its needs in a way that will be legally effective. Also, there are many industry-specific nuances to consider in the drafting process that can only be elicited through an experienced legal evaluation. A qualified business contracts lawyer is an asset during the drafting process, as these attorneys help ensure that agreements are appropriately constructed from a legal standpoint.
Exceptionally complicated agreements require a significant investment of time and money, to answer the many questions they raise. Contract amendments and sizeable agreements often entail a detailed negotiation process that can take weeks or even months to complete. Even simple contracts must be carefully assessed by a business contracts lawyers to ensure appropriate and effective use of contract law principles.
While business contracts lawyers are invaluable to the drafting and negotiation process, they also have a key role to play if the company should ever need to enforce the terms of an agreement. Civil actions pursuing enforcement of contract rights are not uncommon, and a business contracts lawyer is essential to represent the company’s interests. A good contract attorney can also help to enforce the company’s rights outside of court.
Different Types of Business Contracts
The landscape of business contracts is vast, and the specific types that a business encounters depend largely on its structure and operations. For many businesses, the most common types of agreements are employment contracts, partnership agreements and sales agreements.
Employment contracts outline the terms of employment between a business and an employee. In addition to work-related tasks and skills, these agreements can cover important components such as non-compete and non-solicitation obligations, non-disclosure of confidential information, grounds for termination, and employee relationships with third parties.
As a business grows, it may bring in one or more partners to help carry its operational responsibilities, make key financial decisions and lead its employees. Partnership agreements present a formal relationship between a business and its partners. Such agreements can define capital contributions; profit, loss, and expense sharing; duties and powers of partners; obligations of partners to the business and to each other; and grounds for termination of the partnership.
Lastly, sales agreements govern the transactions between businesses and their clients or customers. In addition to the specifics of the sales transaction, such as pricing, description of the products (or services) being sold, and payment terms, sales agreements can specify warranties, indemnification, and limitations on liabilities, such as limitations on the remedies available (e.g., the limitation of liability in the event of consequential damages).
How to Select the Best Business Contracts Attorney for Your Needs
The choice of a business contracts lawyer can significantly impact the level of success of your business. When choosing a business contracts lawyer, there are several factors to consider.
Qualifications are fundamental when choosing a business contracts lawyer. The lawyer you choose should be qualified to handle complex business contracts, including Employee Non-Disclosure and Non-Compete Agreements, Technology Licensing Agreements, Distributorship Agreements, Joint Venture Agreements, and Purchase/Sale Agreements for businesses. Your lawyer should also be qualified to handle challenges that may arise from force majeure events and disputes from business contracts that the other party seeks to enforce.
Experience plays a crucial role when selecting a business contracts lawyer. If you are a new business or a start-up, you should consult a business lawyer who has experience helping similar businesses. If your business requires international transactions, the lawyer you choose should possess experience in global business contracts. You should consult a lawyer who has experience handling complex business disputes.
Unlike other types of lawyers who may focus on a wide range of areas of practice , a business contracts lawyer usually specializes in Business and Corporate Law, Technology Law, and Intellectual Property Law. A specialized lawyer is usually more competent than a generalist.
Choosing a business contracts lawyer with good communication skills can make a difference between winning or losing a dispute. Your lawyer should be able to clearly explain to you in your preferred way all of the terms of a business contract. He or she should also be able to communicate with other parties in a business transaction on your behalf.
The fee structure of the lawyer you consult is also a critical factor. Generally, a business contracts lawyer will either charge an hourly fee or a flat rate. An hourly rate can be convenient if you are not sure how long the lawyer will be working on your business. On the other hand, a flat rate can be helpful if you are seeking a fixed fee for a particular service. You should discuss your goals and their fee structure with your lawyer before engaging them.
Consequences of Non-Optimal Contract Drafting
The companies involved in a contract want to avoid leaving themselves open to unnecessary legal risk or ambiguity to their intent with contract clauses. This applies to every party involved. Having an experienced business contracts lawyer review, edit, and draft all contracts, or at the very least have them read by a knowledgeable lawyer or attorney who specializes in contract law prior to signing can mean the difference between a generalized agreement and an agreement that covers both parties’ concerns.
Of course, companies are busy, concentrated on agreements that need immediate attention, which is understandable, but there could be drawbacks. If one company does not have a contracts lawyer, or only has in-house counsel for other matters, it may approach an agreement less systematically, even if the agreement is of critical importance to the company. For example, in a home mortgage, a borrower who is in a hurry may not read all aspects of a closing document, which could cost them thousands in unexpected interest payments or simply not having enough money for their budget. The same may happen when two companies sign an agreement without consulting their business contracts lawyers. Important provisions could be missed, leading to unexpected litigation, or worse, loss of crucial business.
Legal risks and exposure are present in any agreement, but they can be mitigated when a contracts lawyer is retained to carefully review contracts and make recommendations or revisions. While litigation or legal disputes can still occur, there is much that can be avoided through careful agreement drafting, which is why it is so important to have contracts lawyers involved in contracts from the beginning.
The Future of Business Contract Law
As technology continues to play an increasingly central role in professional life, it has also begun to influence the field of business contract law. For instance, much of modern contract law is transacted via digital means, and the ease of access to legal documentation has variously benefited small, independent businesspeople while posing challenges for larger firms. Contract lawyers and legal professionals must therefore continue to adapt, ever aware of new globalized developments without losing sight of the fundamentals. The existing importance of contract negotiation to the law profession will continue into the future , but the manner in which lawyers negotiate contracts is likely to undergo some changes. Traditional negotiation techniques will continue to prove relevant, but the most skilled lawyers will track the ways in which negotiation strategy is in constant evolution. The most important thing is that lawyers consider both their basic tactical approach and the influence of contemporary factors such as global unrest and technological advancement; as always, the best legal professionals are those most willing to adapt.