Clients often ask if they really need an attorney to prepare their service contracts. After all, when you’re starting a business, cutting costs is a priority.
With a wealth of online resources, it might seem easy to handle contracts yourself. Some clients turn to free templates from professional organizations, others rely on DIY legal services, and some even attempt to draft contracts on their own using a patchwork of clauses found through internet searches.
Everything may seem fine—until it’s time to enforce that contract.
Recently, a client came to me with a contract she had drafted for her foundation. She wanted to remove someone from their position for not adhering to the organization’s rules. However, due to conflicting provisions in the contract, there was no clear mechanism to do so. The document had glaring gaps, leaving the member with no defined responsibilities, and to make matters worse, it was governed by the laws of a state where the business wasn’t even located. If the foundation had to take legal action, they’d be forced to file in another state—creating unnecessary complications and costs.
We often see cases where businesses want to add on to an existing contract, only to discover that the original contract doesn’t reference the new terms, creating conflicts between the documents. Who decides which version prevails? You don’t want a judge making those decisions for your business.
And some contract provisions can actually harm your business. Arbitration clauses, for example, are often seen as a way to avoid lawsuits, but many businesses don’t realize that arbitration can be more expensive than court proceedings, with no option to appeal if the decision doesn’t go your way.
An experienced attorney knows what language to include to protect your interests and what to avoid that could limit your rights in a dispute.
These documents are the bedrock of your business and safeguard your investment. The time and expense of an attorney are invaluable when it comes to ensuring your contracts hold up when it matters most.