If you’re a business owner in Connecticut, you understand how vital it is to have good contracts. These written agreements protect your rights when it comes to relationships inside and outside your company. However, many owners are not sure which terms should be included in their contracts. Every agreement is different, and must have its own unique wording. But there are some provisions that nearly every contract should contain. The Connecticut business lawyers of Aeton Law Partners can guide you and your business.
Here are a few essential items for your business contracts:
The complete and accurate identification of all parties.
Companies sometimes go by a number of names, including DBAs. They also sometimes have affiliates, subsidiaries, and related businesses. It is imperative that the contract correctly and completely identify all parties. Generally, the identification of the parties is somewhere toward the start of the contract. Also, be sure that whoever signs on behalf of any businesses actually has the authority to bind the company.
The term of the contract and any automatic renewal provisions.
The duration or term of the contract should be clearly stated. You should also be on the lookout for any automatic renewal clauses. Some contracts require parties to take specific actions to avoid the contract renewing. Make sure you understand how long the contract will be in effect and how it might renew.
Default and default remedies.
In contract law, a default is when one party to the agreement fails to perform its obligations. The contract should explain clearly what constitutes a default. Defaults can potentially lead to breach of contract actions. For that reason, there should also be methods for how the defaulting party may remedy the default.
Dispute resolution.
A dispute between parties is highly likely at some point. They may not agree on the meaning of a term or may assert that there has been a default. Regardless, the goal should be to avoid a potentially expensive lawsuit. The contract should therefore include dispute resolution methods such as mediation and arbitration.
Contract termination.
Under what circumstances may a party terminate the contract? How can this be done, and is a reason required? Must the termination be in writing, addressed to a specific individual or department? What happens after termination and how do the parties wrap up their relationship?
Indemnification.
The goal of indemnification is to protect a party from liability if a third party is somehow harmed. It obligates one party to compensate another for certain losses. These clauses could impose significant responsibilities on you, and should be carefully reviewed with the assistance of legal counsel.
Are all negotiated terms in the contract?
Finally, and as a general issue, the contract should accurately include all negotiated terms. You’ve likely spent a great deal of time and maybe money negotiating this agreement. So make sure all of the negotiated terms are fully and correctly stated in it.
Count On Aeton Law Partners For Your Contract Needs
The business lawyers of Aeton Law Partners can help with the drafting, negotiation, and modification of contracts. We also represent clients in litigation involving business contracts. To learn more about our services, give us a call today.