Communication is key in every relationship, especially in business, where money and legal ties are the key factors that bind two parties together. Thus, it follows that failure to understand contractual terms is one of the leading causes of disputes in New York. You may need to review your agreement to make sure that you and the other party are on the same page.
Use clear, concise language in your contract
It’s imperative to draft your contractual agreement in a language that everyone involved can understand. Avoid industry jargon, and be sure to state the expectations of each party clearly. Make sure every clause is adequately understood by all involved to avoid any misunderstanding that could arise in the future.
Take your time while reading contractual terms
Consider taking your time and carefully read through each line before signing off on the agreement. Even if you think you understand something, ask questions if something doesn’t seem quite right or if there are unfamiliar words used in a sentence to prevent potential contract disputes.
Discuss differences prior to signing
It’s always best practice to discuss any potential differences with the other party and devise a resolution before entering into a contractual agreement. A business relationship started on the wrong foot will likely go sour with time.
Record changes made to the agreement
Once both parties have agreed on the terms, ensure all changes are properly noted and recorded in writing before signing off on the document. This will provide evidence should there be any dispute over a certain clause. It’s also important to keep copies of all documents for each party just in case something goes wrong.
A business contract is a blueprint that sets the parameters of a profitable business relationship. Therefore, it has to be perfectly crafted and understood by both parties to ensure a smooth and successful partnership.