The history of contract law in modern civilization is as long-winded as it is boring. It’s one of the things most law students suffer through, but it can also be fascinating. As a fan of history, I enjoyed learning about the evolution of contracts from the Greeks and Romans and English. Contracts are basic function of life – be it business, government, or most everything else – and it’s important to know their relevance in your world.
What’s a Contract?
In a nutshell, a contract is a legally binding agreement between two parties. It may be a customer-proprietor agreement or a deal between business partners or separate companies. Although many businesses informally use oral agreements in their course of business, it’s very important to make sure the terms of your agreement are adequately memorialized to be enforceable in court. For that reason, formally written contracts are typically best to use.
Most of us sign contracts every day and rarely notice. Have you ever clicked “I agree” at some point online while you’re trying to sign up for a service or new account? Nowadays, nearly everything we do comes with some sort of contract or legal representations. Making purchases online, downloading music, creating a social media account – there’s bound to be some form of contract (even if it’s just informational) you must acknowledge before you can proceed. One could argue we’re over-contracted in current society, but it’s all about keeping folks on the right track.
Why Do I Need Contracts for My Business?
If you’re a business owner, no doubt you’re well-versed in needing contracts before you even make that first sale. It’s the nature of doing business, and every company needs to consider how simple or how detailed they need their contracts to be for every aspect of their business. In order to protect you and your business, it’s important you have the necessary contracts at every stage.
Consider these five reasons for having a contract in your business:
- Basic facts: The pertinent details of the agreement or deal need to be spelled out, as well as any consequences for one or both parties failing to meet the terms of the agreement.
- Fixed costs: Exactly what it will cost and when those funds are due is important to know so you don’t run into any surprises down the road.
- Limit obligations: Service contracts cover exactly what the business will do, and nothing more. Don’t get stuck doing work without compensation.
- Non-compete agreements: A way to safeguard your business from partners, employees, and other companies with their own agendas. This often helps limit any negative impact to your business.
- Expertise: Because lawyers usually draft the important contracts, it usually takes another lawyer to review and interpret. Insight from a legal expert is important.
In highly competitive markets, it’s crucial you and your company are equipped with the right contracts to move your business forward. Contracts keep people on track, make sure you receive payment, and clear up any misunderstandings or confusion. Done right, they benefit everyone involved.
Where Can I Get Help?
Of course, now you’re likely thinking you need a contract for every single thing you do and might be overwhelmed. To that, I’ll say “no” and “don’t.” Chances are you only need a contract for the big stuff, and my team and I are available to help you through that process.
At the Parvin Law Group, we review contracts, negotiate terms, and draft agreements for clients on a regular basis. We’re well-versed in business transactional law and act as corporate counsel for numerous Texas businesses. Sometimes those small or mid-sized companies need us to weigh in each month, sometimes just once a year. Regardless of frequency, our goal is always the same: make sure our clients are equipped with the best legal expertise and the best tools for making their business a success.
If you need help drafting or reviewing a contract or simply don’t know where to start, let us know. Call us today at (214) 974-8940 (or visit our self-service webpage) to schedule a free consultation. We’ll walk you through our process, explore the various ways we can help, and get you and your business headed in the right direction.
ATTORNEY CHRIS PARVIN is Board Certified in Estate Planning & Probate Law by the Texas Board of Legal Specialization. Mr. Parvin is the Managing Partner of the Dallas, Texas law firm of Parvin Law Group, P.C. and serves as an Adjunct Professor of Law at Texas A&M University School of Law. Mr. Parvin can be reached by email at firstname.lastname@example.org.
Parvin Law Group, P.C. is a Concierge Law Firm in Dallas, Texas with attorneys practicing law in the fields of Estate Planning, Probate, and Business Law.