3 effective methods of preventing contract disputes

| Aug 15, 2022 | Business Litigation |

Contract disputes arise for many different reasons, but all of them have the capacity to take valuable time and money away from your California business’s operations. While you have options in terms of how to handle a contract dispute when it does arise, it often benefits business owners to take certain steps to reduce the likelihood of them arising at all.

According to Inc., the clearer you are when drafting your employment or other business contracts, the lower the chances of a contract dispute arising. Taking the following three steps may also help you avoid finding your business embroiled in expensive and time-consuming contract litigation.

1. Always have a notary present

Have a notary onsite every time you or someone else signs a business contract. This serves two distinct purposes. First, it makes it really hard for those who signed the contract to argue they did not do so. Second, having a notary there during signing raises the odds of everyone who has to sign the contract reading it all the way through.

2. Always verify who signs the contract

You also need to ensure that the party who enters into a contract with you or your business has the authority to do so. If the party who signs the contract misrepresents who they are, it may result in the contract becoming invalid.

3. Consider future variables

It is also advisable to consider future developments when drafting your contracts. Outline if your contract renews at certain points, or if there is anything that could happen that would make its contents invalid.

Be sure, too, to eliminate any language from your contract that might be vague or open to interpretation.

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