Disputes over contracts are common, but they have the capacity to take considerable time and attention away from running your business. Though every contract dispute may not be preventable, there are certain things you might do as a California business owner to reduce the odds of your company spending valuable time and money on one.
According to Inc., here are a couple of steps that may help reduce the chances of your business being involved in a potentially costly and timely contract dispute:
Have all contracts notarized
Having a notary present when you execute a contract offers two key benefits. First, it makes it virtually impossible for a party to deny they signed the contract. Second, because everyone signing the contract knows a notary is overseeing its execution, they may be more likely to read it cover to cover. The more thoroughly everyone involved in a contract reads and understands it, the lower the chances of future disagreements arising over its contents.
Make sure the right parties sign the contract
You need to do a little due diligence to make sure that the party or parties who sign your contract have the authority and legal ability to do so. You also need to ensure that they are who they claim to be. Otherwise, the contract you sign together may become unenforceable, leaving you without options.
Before you execute a business contract, make sure you have covered all your bases. If you have yet to decide upon a budget or delegate exact responsibilities, hold off on signing a contract until you have a chance to tie up these loose ends.
