Why should you notarize your business contracts?

| Aug 11, 2020 | Business Litigation |

Writing business contracts allows you to establish expectations and clarify outcomes for important relationships affecting your organization. Relying on a contract to provide direction and encourage obligation may protect your intentions and aid in your ability to network and strengthen your reputation in California.

While having a contract is a valuable step in protecting your company, failure to verify its legal function may render your agreement unenforceable. If this happens, you may find yourself facing a costly legal battle if a dispute arises.

Verification through notarization

While notarization is not always required to make your contract legally enforceable, having each signature notarized may prevent disappointing losses if another party claims you have failed to uphold your obligation.

According to Entrepreneur, a couple of important reasons to notarize all of your contracts include the fact that insurance companies typically bond notaries. This means if another party denies having signed an agreement, a notarized signature can prove otherwise. If the discovery of an oversight on behalf of the notary creates doubt, the insurance company may absorb the costs associated with applicable legal fees.

Communication is key

From the moment contract negotiations begin, be open in your effort to communicate your expectations to the other party. Likewise, spend ample time reaching mutually beneficial agreements and verifying each party’s understanding to prevent miscommunication from undermining the relationship and its potential to help your organization. A well-written contract has the ability to encourage the fulfillment of obligations from all parties and is instrumental in providing clarification on a variety of issues that may arise throughout the relationship.

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