When a business is starting out in Tennessee or in another state the time will come when one must enter into business contracts with vendors, customers, clients or others. Some new business owners try to stay away from anything as formal as a written agreement because they think that this will plant the seeds for future trouble and conflict. Just the opposite is true, and in fact, the incidence of business litigation is reduced by implementing contracts for clarity and mutuality of intention.
Contracts are an established tool in the business world because they can remove doubt and uncertainty. With the complex data that may be the subject of today’s agreements, it would be nearly impossible to even remember one’s obligations without a written memorial of the promises and undertakings that were agreed upon. It would be difficult to plan one’s budget ahead if the business did not have written agreements to rely on for certainty in financial relations with others.
Not only does the written agreement set forth the terms of the obligations agreed upon but they also may include the parties’ understanding of what remedies will be available if a party breaches the contract. One thing to keep in mind about written agreements is that they can be ambiguous or hard to follow if they are not written clearly and with various contingencies in mind. A transaction business law attorney is highly recommended for businesses that need to construct business contracts.
The business attorney is trained and experienced over years of practice to know what wording is clear and will most likely avoid confusion between the parties. Certain terms may have precise legal meaning in a particular industry and the experienced transactional attorney will deliver the best and clearest wording to fit the deal being articulated. Using a business law attorney for contract drafting is the most effective way for a growing business in Tennessee to avoid expensive business litigation going forward.