A contract at its most basic level is a promise between two people or businesses that each will perform a certain action. This could be the production of goods in exchange for payment.  It could also be a collaboration where one business pays for an event space while the other brings a minimum number of participants so that the two can collaborate in a seminar.

Contracts take many forms, but all contracts have three basic requirements.  

1. Offer – One party makes an offer of an exchange to the other.

2. Acceptance – The second party agrees to the offer

3. Consideration – both sides must provide some form of benefit, whether through payment or action

If one side makes an offer for exchange of benefit and the other side accepts, a contract is formed.  However, as you know reading this, there are many more terms that are typically included in an agreement.  If goods or services are to be provided, when are they provided?  What if there is a default?  Are there trade secrets or inside business strategies which need protecting?  It is the navigation of these terms where an attorney is often brought in to avoid disputes later.  

Strong contracts avoid disputes.  Avoiding disputes protects valuable business relationships.  Doing business “on a handshake” because the relationship is “so very good” is one of the worst ideas.  What happens when there is a basic misunderstanding of the terms?  What happens when one side wants to complete their terms, but they are unable to do so?  A business without a strong contract is often risking their most valuable and most loyal relationships by not having clear terms.  If one side cannot comply, they may have a different idea of what is fair than the other side in fixing the problem.  Should they have to pay for the company hired to fix the problem?  Pay for lost income?  Pay for the delay?  They may not have foreseen the problems that came about, but they are in an agreement with a trusted partner.  Trusted partners in disagreement over how things should be set right create the most bitter and expensive legal battles.

Of course, we handle both the creation of strong agreements, as well as representation in court when someone does not honor the contract they signed.  We understand that there is often a balance between salvaging a relationship and ensuring that the business is fully compensated for its losses.  If you are looking at a contract dispute or creating a document designed to avoid disputes, we invite you to call  770-863-8355  to set up a strategy meeting with one of our attorneys.

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