Running a business in Florida means balancing a lot of different considerations. You have to make decisions, keep records and plan for the future. Having enforceable and strong contracts is an important concern for any business that often gets overlooked until a company runs into trouble. You may not stop to consider your contracts until someone breaks one and leaves you in a bad situation.
If you are like most business owners, you probably do your best to keep costs as low as possible. You may have started out using a basic contract template from the internet as a way to start your business without incurring a lot of success. However, eventually, you may learn that fill-in-the-blank contracts don’t really protect your company’s best interests.
Whether you have recently run into a contract conflict or are thinking about how to protect your business in the future, looking over the contracts you frequently use for business is a smart step to take.
The more specific and accurate the contract, the more protection it provides
Easily the biggest issue with using basic template contracts is that they simply can’t be specific enough to your company’s situation. You want a contract that explicitly addresses your expectations from the other party.
Whether it’s an employment contract that outlines the relationship between you and staff or a supplier contract asking for delivery of goods and services, you want one that includes the specifics about your needs. If the contract relates to services provided by another business, detailed instructions or expectations can help you if the other company fails to adequately perform their end of the bargain.
For example, when your staff members sign an employment contract, using specific language is a way to ensure that you can enforce the various clauses. If you have a non-compete agreement in that contract, you want a document that talks about your geographic region and industry specifically. You might want to discuss the role of the individual signing the contract and how you want them to limit similar roles with other companies immediately after leaving yours.
Reviewing your contract for enforceability is important
Did you have a special contract drawn up for your business when you first formed it? Even if you have already taken the step of creating specialized and specific contracts for your company, you need to periodically review them with an attorney. Laws in Florida change all the time, as state lawmakers do their best to balance the needs of consumers and companies.
Contracts that include outdated or illegal terms and conditions will be difficult, if not impossible, for you to enforce. Routinely reviewing and updating your contracts will help ensure that they protect you in the event that you have to ask the courts to uphold them.