Contracts Are Worth The Investment Especially In A Credit Crunch

The contracts which record the profitmaking activities of a

modern business are all too often neglected. This may turn out to

be a very poor investment decision in a tight economy. Contracts

are more than words printed on paper. Who needs a lawyer to draft a

watertight contract?

I can draft a contract, there's no magic in

it

True ? there's no magic, but there's usually

some law. The law of contract is found in statutes and precedent

which evolves as the courts decide cases before them. Commercial

solicitors keep abreast of the law. There is no scope for the

"I thought that meant ..." or "I meant it to say

..." mitigation when the provisions of a contract are judged

at some future consideration of their terms. It's not always

what is written in a contract that makes the difference, it can be

what has been left out.

We avoid going to court, so why do we need a legal

contract?

If you concede every dispute you get into, you are unlikely to

end up in court. If you want to enforce your contractual rights,

the lack of a good contract can thwart your best intentions.

Keeping contractual disputes away from the courts relies on well

crafted contract documents.

There is a view that whatever the contract says, businesses will

work something out if a problem arises. Contracts do not prevent

compromises being reached, but the goodwill to resolve issues

amicably can be a light which fades with the passage of time. A

good contract provides a base-line for negotiated solutions. The

party with the better contractual position stands more chance of

achieving the outcome it seeks.

We cannot afford to upset the other side

Contracts are never negotiated in a vacuum. The commercial

strengths and vulnerabilities of the parties will impact on their

ability to negotiate the terms they want. It can be difficult for a

company that needs to win a contract to stand up for itself without

incurring the displeasure of the other side, but the other side

will be more willing to accept that a prudent company, advised by

lawyers, cannot ignore the professional advice it has received. A

lawyer on the negotiating team can enable you to punch above your

weight.

Lawyers just cost money

Of course lawyers charge for their services ? they

charge when they draft the contract documents through which

business is done and they...