Startup businesses go through a range of phases before launching. From securing office space to ordering inventory, the tasks are endless. One critical component for new firms involves business contracts. It’s wise to ensure contracts are read and understood to avoid negative legal consequences later. Here are several do’s and don’ts to keep in mind.

Do:

Include important clauses and topics and dispute resolution plans.

Make sure the business contract contains detailed information such as liability matters. These can include company or employee negligence, computer system breaches, and slander. Tailor the contract so that the topics specifically address issues that are relevant to your business and industry. Include steps to resolve customer and vendor disputes.

Comply with local, state, and federal laws.

The business contracts must meet compliance rules and regulations established by your local, state, and federal authorities. An attorney who specializes in drawing up company contracts can ensure the language meets legal standards to prevent penalties and fines.

Don’t:

Use vague, broad, or unclear language.

Avoid complex terminology in business contracts because the vagueness could cause confusion. Business contracts are considered legal documents. If there is ever a dispute, it will serve as the basis for your case. Be sure language is clear, concise, and lays out specific language regarding your business.

Sign any documents without a lawyer’s review.

Never put your signature on business contracts and other legal documents without having your lawyer review it first. They specialize in reading and understanding the jargon and can identify areas of concern. A thorough review by your attorney can help prevent legal, financial and even criminal consequences for you and your startup.

If you just launched a new business or are gearing up to open one, protect it from the unexpected. The law firm of PoindexterHill, P.C. in Waynesboro, VA, has a stellar reputation for working with startups and established companies. Should you need business contracts drafted or reviewed, count on the team of experienced attorneys to advocate for your best interests. To schedule a consultation, call (540) 943-1118. Visit the website for information on the full suite of offerings, including business incorporation and civil litigation.