When I speak with many business owners, I am often surprised to hear that they draft their own contracts. When I ask them why they didn't hire an attorney, the answer I often receive is that they are trying to save money. However, this practice is very risky, especially since a contract is a legal document binding you and another party to certain obligations. When you're a small business owner, making one mistake in drafting a contract could result in someone suing you for a lot more than it would have cost you to hire an attorney.

Business owners who draft their own contracts are one step away from litigation. You may know your business but you don't know the law. Simply using certain words or not defining certain terms could result in you ending up in court.

By using an attorney, you could avoid disputes, especially when it comes to payment terms between the parties. The most common terms that are disputed are about payment. How much is owed? When is it due? What happens if the payment is not made on time? Is the payment contingent on any factors? Everything must be spelled out in detail and nothing should be assumed.

Owning and operating a business is an investment. It is an investment of your time, your money, and your passion. While many business owners don't always see legal services as tangible, it is wise to make sure that your business is safe, secure, and protected so that no one else can collect on your hard-earned returns.

Please contact us if we can help you avoid these issues. You know your business — we know the law.

Talk with you next month,
Kelly