The Potential Risks Of Creating DIY Contracts For Businesses

Over the years working in business, I’ve proven that contracts are important in any business transaction as validation that an agreement has been made. Clever entrepreneurs know the importance of contracts however, they often choose to find other options on how they can lessen their expenses by having DIY contracts. For example, some entrepreneurs try to create contracts on their own using the templates they found online. This may seem practical: however, doing this comes with risks. Listed here are the possible risks that you might encounter when you prefer the Do-It-Yourself (DIY) option.

1. DIY contracts might not include important conditions. Creating a contract on your own to lower your expenses can result in an accidental omission of critical legal terms and clauses that gives protection to your business as an entrepreneur. More often than not, templated contracts you found online are mostly generic with contents that are not customized for your business. This often leads to agreements that are not able to supply the precise protection which makes the contract highly important. Lawyers like me have the necessary experience including the sources to create contracts that contain all the essential provisions to ensure the security of your business.

2. DIY contracts tend to become unenforceable. The inability to understand legal matters can lead to creating a contract that is identified as unenforceable when contested in a court. For instance, some particular laws differ in each state. With this, a contract does not apply to all wherein a contract is suited in one state while it is not suitable to another state. For example, an employment agreement that has a non-compete provision might be enforceable in Miami but unenforceable when it comes to California. In this situation, the person who uses a contract for Miami and intended to use it for an employment agreement in California is using a contract that has no value is ineffective.

Furthermore, a contract becomes unenforceable due to the ever-changing laws that get updated each time depending on evolving case law and legal updates. Some terminologies must be included, taken out, or modified to be able to retain lawful force. These alterations are often unnoticed when you use DIY contracts that lead to law agreements that are out-of-date or even unreliable for your business. Lastly, there is a large selection of legal procedures that explain as well as determine the conditions that should be present so that a contract can be considered legitimate and enforceable. The inability to maintain conditions concerning enforceability can make documents that seem appropriate bear no legal value.

1. You might create unintentional legal accountability. Creating a contract will require strategic language. Either the inclusion or exclusion of numerous terminologies can unknowingly create legal responsibilities that will make your business legally accountable. This is a fact since the boilerplate language that is often found in templated contracts is quite complex. The information covered found in boilerplate language might produce commitments that you are not lawfully obligated to accept.

These numerous risks can end in greater legal responsibility, less security, and costly attorney fees to solve these problems. The money you saved with DIY contracts can be outweighed by the time and money that you may spend with any of the risks involved. The quote “Prevention is better than cure.” is indeed true in almost anything.

Call Me Now!

I am aware of the difficulties that most businesses are experiencing, and I can guide you in crafting a contract that can provide security for your business. I can assure you that I have the capability and good credentials to assist in helping your business reach its maximum potential. You can schedule an appointment with me at (305) 921-0440 or through my email at Romy@jflawfirm.com. I am looking forward to working with you!

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