Are there benefits of having an enforceable contract?

A contract is one of the most important tools a freelance professional or small business owner has at his or her disposal. When properly drafted and executed, contracts form a legally binding relationship between a business and a client. Contracts can also provide clarity and even get rid of a variety of problems that could potentially arise before they have a chance to come up. By creating certainty, a company can spend its time delivering a quality product or service.

In a time of breach, the terms of a contract could spell out what the penalties are. In times of confusion, it may also serve as the starting point for negotiations because it can also be written to obligate parties to try mediation or present their case at an arbitration hearing before heading to court.

You must also remember that there are certain reasonable circumstances where neither party to a contract see coming. For example, a flood or a freeze could wipe out pipelines, servers, or otherwise make it impossible for a company to meet its contractual obligations.

If needed, a contract could pave the way to cancelling a legal relationship between a professional and a client. It can also give vendors a way to end a relationship with another business (or yours).

If contractual issues arise, it may be worthwhile to have an attorney review the contract. This might make it possible to determine if any party to the deal has breached the deal. If so, an attorney may assist in formal or informal actions to resolve any issues related to the breach. Even if a contract is not breached, it may be worth discussing whether there are ways to improve an existing relationship.

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