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What should you know about business contracts?

On Behalf of | Nov 11, 2022 | business litigation

Before signing any sort of contract, it is important to understand the transactions, language, expectations and other aspects that make up said contract.

This goes for business contracts, too. Rather than skimming over legal jargon that might be hard to understand, it is important to pick the document apart to ensure its validity.

Contracts from state to state

Forbes discusses the important aspects of business contracts. First, know the laws regarding contracts. For example, some states require contracts to be in writing before they are considered legally binding. However, oral contracts can also be considered legally binding in others, such as California.

Unfortunately, it is harder to prove a breach of contract in the case of an oral contract, due to the fact that there is no recording to go back to and consult.

Keep in mind that many contracts have an expiration date as well, which is particularly relevant in the event of reviewing the contract before signing it. This allows for plenty of time before the actual signing, letting a person consider the deal first.

Making changes in a contract

In this period of consideration, the individual could potentially offer changes in the original terms of the contract. They may even propose a counteroffer, highlighting different wants or needs that may not have been provided for in the original contract.

In this event, the creator of the contract can either accept the counterproposal as it is, or they may instead edit the contract to reflect different terms. It is a negotiation process, so do not be afraid to use it as such.