Most business owners know that a contract based on a handshake and a promise is doomed to failure. However, a robust and well-written contract is a must if you want to safeguard your business against unanticipated repercussions.

Our prescreened California Business Lawyers know how crucial contracts are for businesses and partnerships, protecting both parties from breaches and other negative consequences.

california business contract attorney

7 Tips On Writing Effective California Business Contracts

So, here's how a prescreened Los Angeles business law attorney would advise their clients on writing business contracts in California:

Tip #1: Write It Down

It is generally advisable to write your agreement and have all parties sign it. Although most courts would uphold verbal agreements, there could be contentions with what was said, how it was interpreted, and how it was fulfilled. Written agreements always carry less risk because they clearly define both parties' duties.

Tip #2: Ensure Clearly Stated Payment Terms

You won't know how or when to expect payment without specific payment terms. So always be clear about who is paying, when payments are due, and any payment requirements. For example, will fees be made via wire transfer, certified check, cash, or personal check? Whatever option you choose, be sure to include the terms of payment.

Tip #3: Properly Identify Signing Or Agreeing Parties

You'd be shocked at how frequently contracting parties fail to correctly identify themselves or the appropriate party. To make it apparent who is bound by the contract, it is crucial to name the parties to the agreement correctly. For example, if the parties are corporations, it's a good practice to refer to them by their official names.

los angeles business law

Tip #4: Be Specific

Every contract should clearly outline each party's rights and responsibilities so that there is no doubt as to who is responsible for what.

In addition, don't be hesitant to revise the contract sometimes to reflect how you work with the person with whom you have a contract if your business practices change after signing it. This keeps everyone in the loop and safeguards your safety.

Tip #5: Identify Validity Or Expiration Dates

You should know that most contracts eventually expire and must explain how this happens. In addition, most contracts should specify whether the parties may end the agreement at any time or only in case of a breach.

You should think about mandating that the violating parties be informed of their wrongdoings and allowed to make amends. By doing this, disagreements might be avoided entirely.

Not to mention, limiting the contract's validity would allow you to make adjustments and changes in the future. For example, if a supplier hasn't been doing well for the last few years, you can drop them and search for a new one by the time the contract ends. On the other hand, if things are still going well, you can just easily renew and improve the agreement.

Tip #6: Find The Right Point Person

Find the decision-maker at all times when bargaining. You can end up with a contract that isn't worth the paper it's printed on if the person you negotiate with doesn't have the legal right to operate on behalf of their company.

See if you can speak to the gatekeeper of the contract early on in the process to go up the corporate ladder and ensure that you are talking to the proper person. If unsure, have your Los Angeles business law attorney speak to other parties instead.

Tip #7: Keep Things Simple And Easy To Understand

Legalese is the demise of contracts, and it merely irritates both parties. Use terminology that is industry-specific or plain and easy for everyone instead. Again, ensure the contract is simple enough for an average reasonable person to understand.

Our prescreened Los Angeles business law attorney prefers that California business contracts be phrased so that other parties, including judges and jury members, can interpret the agreement the exact way you want.

los angeles business law attorney

Hire A Los Angeles Business Law Attorney Near You is a California Bar Association Certified Lawyer Referral Service that refers you to a fitting Lawyer best suited to handle your case. You may contact us through our 24/7 live chat (or complete our case details submission form) for a free initial consultation.