Contract Terms Business Owners Need But Often Overlook
Many business owners who enter into contracts with customers, suppliers and clients overlook important key terms and arbitrarily accept “boilerplate” clauses at the end of the contract without examination. ALWAYS remember to include the following terms:
1. Indemnification.
This is an important contractual term which shifts the burden from an innocent party to the party responsible for creating liability. Make sure that an indemnification clause provides protection for you and your business and not just for the other party. Avoid an indemnification clause that will only provide indemnification protection to one party to the contract.
2. Severability. Generally, if a contract has contained in it an invalid or illegal term, it typically makes the entire contract invalid, unless the contract contains a severability clause. So as to avoid making the contract void entirely, insert this clause so the remaining terms of the contract remain enforceable.
3. Attorney’s Fees. Many business owners who win Court cases are disappointed with the legal process, because even though they’ve won their case, they are typically left with a large legal bill. If the lawsuit involves a contract claim, and if the contract contains a provision for attorney’s fees, then the party who is successful may be able to recover their attorney’s fees from the other party.
PLAN PREPARE and PROTECT your business by limiting your exposure should a lawsuit rear its ugly head.
Remember, you don’t have to be in the wrong to be sued.
BEST ASSET PROTECTION Services Group: WFB Legal Consulting, Inc. (949) 413-6535
