Seven Reasons to Thoroughly Review Business Contracts

Contracts are fundamental to any business. Whether you are drafting contracts with employees, vendors, or others, it is of the utmost importance that these contracts are drafted properly. It is also just as important that a Utah business law attorney thoroughly reviews them to ensure that they contain clear language, provide the necessary protection, and more. Below, one of our Utah business law attorneys outlines some of the most important elements we look for when reviewing contracts.

Prevent Misunderstanding 

When two or more parties enter into a contract, it is crucial that they all clearly understand the terms and conditions of the agreement. Only when all parties understand the terms of the contract can they agree to it, which will prevent conflicts and legal disputes in the future.

Identify Hidden Costs 

Contracts sometimes contain clauses intended to hide costs or other obligations. Without identifying these costs, a business could be liable for costs they did not know they were liable for. Understanding that a contract contains these hidden costs can help a business owner negotiate and safeguard the finances of their business.

Protect Rights to Intellectual Property 

Intellectual property includes intangible assets such as recipes, customer lists, processes, trademarks, and more. A contract can clarify ownership and usage rights and prevent unauthorized use and infringement on the property.

Minimize Legal Risks 

Thoroughly reviewing a contract can also identify legal liabilities and risks. Proactively addressing these can help businesses avoid compliance violations and lawsuits in the future. Contracts are inherently meant to minimize legal risks, but a thorough review ensures they will.

Strengthen Position for Negotiations 

Having a full understanding of all a contract encompasses allows business owners to negotiate terms that are more favorable to them. Agreeing to a contract that has more favorable terms does not only benefit businesses now, but in the future, as well.

Compliance with Regulations and Laws 

There are specific laws regarding contracts in Utah. A contract review can ensure that any agreement complies with all pertinent regulations and laws. A contract review can also help business owners avoid legal consequences in the future and ensure a business operates smoothly.

Protect Sensitive Information

 All businesses have certain information they want to keep confidential. For example, a small family-run restaurant may want to keep their annual profits confidential. A thorough contract review can help do this by ensuring that certain clauses are included to keep sensitive information from getting out.

Our Business Law Attorneys in Utah Can Review Your Contracts 

Business contracts are much more complicated than they may seem at first. A comprehensive review is your first line of defense against financial losses and possible legal action. At AGS Law, our Utah business law attorneys can draft all of the contracts your company needs and review them with you to ensure that they meet your goals and needs and will provide all of the protection you need. Call us now at 801-477-6144 or chat with us online to schedule a consultation and to learn more about how we can help.

Source:

le.utah.gov/xcode/Title15/C15_1800010118000101.pdf