-When it comes to creating business contracts, entrepreneurs and small business owners often face a dilemma: should they use a contract template downloaded from the Internet or hire an experienced business contract attorney? Both options have their merits and drawbacks, and the choice ultimately depends on various factors. Adam Daner, Esq., the attorney with Atascadero’s Daner Law Firm, explores the options.
Downloading a business contract template has the benefits of convenience. An internet search for “business contract for retail vendors,” or some other business topic usually presents several free to seemingly inexpensive options. Downloading just takes a click.
Any downloaded contract is only an example, or template, of some of the items that need to be in a contract. While some people may feel confident with editing and customizing the template, there is a very real risk that critical and necessary information is going to be omitted, or at best, insufficient.
The purpose of a business contract is to protect the interest of those involved, especially the business initiating the contract. Improperly worded or omitted clauses can leave a business at risk for breach of contract and more.
Further, it’s highly likely that the company you are seeking to do business with will have the contract reviewed and rewritten by their attorney. The rewritten contract may not be in your favor, creating even more risk.
The Atascadero attorney advises that it’s important to weigh the seeming convenience of using contract template with the assurances of working with an experienced attorney.
The risks of using a downloaded contract
Every business agreement is different, even when the purpose is the same. An independent contractor contract for providing specific services might have many standard contractual clauses, but different clients have different ways of doing business, and those ways may need to be accommodated. Doing business with a customer in another state might require adjustments to accommodate local regulations, or delivery costs. Every contract needs to be reviewed and adjusted to each individual business agreement before it is signed. The risks include:
- Generic online templates rarely address the specific needs of business or the unique aspects of particular situations.
- Online contracts may not be up-to-date with current laws or may not consider state-specific regulations, potentially leaving your business vulnerable to legal issues.
- Without legal expertise, you may not fully comprehend the implications of certain clauses or terms in the contract, which could lead to unforeseen consequences.
- A poorly written or incomplete contract may not be enforceable in court, defeating the purpose of having a contract in the first place.
The benefits of an experienced business contract attorney
An experienced attorney can craft a contract tailored to your specific business needs, ensuring all necessary clauses and protections are included, such as:
- Attorneys stay up-to-date with current laws and regulations, ensuring your contract is legally sound and enforceable.
- A skilled lawyer can identify potential risks and include provisions to protect your interests, potentially saving you from costly disputes in the future. Consider the potential consequences of a contract dispute. If the risks are significant, investing in legal expertise is wise.
- An attorney can explain complex legal terms and ensure you fully understand the implications of the contract.
- If you’re entering into a contract with another party, an attorney can provide valuable negotiation assistance to secure favorable terms.
- If you anticipate frequent contract needs or complex business relationships, establishing a relationship with a business attorney can be beneficial in the long run.
- Some industries have unique legal requirements that may not be adequately addressed in generic online templates.
Making the right choices
Hiring an attorney experienced with business and business contracts provides a higher level of security, customization, and legal protection. Adam Daner, the Atascadero attorney has been practicing law since being admitted to the bar in 1994. The Daner Law Firm provides business and estate planning services for clients in California’s Central Valley, the Central Coast, Monterey and San Benito counties, Fresno, Kern, Kings, and Tulare counties, and Los Angeles.
Along with business planning, advising businesses and individuals with acquisition negotiations, contract drafting, leasing, landlord/tenant roles and responsibilities, licensing requirements and entity formation, other services include:
- Estate planning, trusts, advanced health care directives, power of attorney, guardianships, and probate matters.
- Construction, representing engineers, architects, general contractors, sub-contractors, material suppliers and related entities with licensing, payment, contracts and related issues.
- Real property, negotiating and drafting leases, road maintenance agreements, purchase and sales contracts, easements, licenses, and home owner association documents.
- Litigation involving the above categories, including personal injury and wrongful death claims, slip and fall, automobile, construction, assault and battery and false imprisonment.
Daner Law Firm
4555 El Camino Real, Unit J
Atascadero, CA 93422
(805) 464-5003