As a small business owner (especially one who is just starting), cost-efficient solutions appeal strongly. Entrepreneurs do more with less. They understand the need to build capital alongside risk mitigation. At first, DIY contracts seem to fit both needs. In addition to protection, they are affordable.
Contracts and agreements are the foundation of almost any interaction you have as a business owner. They outline your relationship with your employees, vendors, and any other party that gets intertwined with your company. Like every decision you make, you must consider what you are losing with what you gain. By taking a deeper look at DIY contracts, you may realize the opportunity cost is too great.
They Aren’t You
A DIY contract may be nothing more than a template. It’s designed to meet a wide range of needs for different businesses. Contracts should fit you rather than the other way around. When you use a universal contract, it lacks the custom-built provisions to protect you and your interests.
Nebulous or broad language opens the door for argument—which is the opposite of what you need. If a dispute arises, you want your contract to be the solution. Contracts that leave room for interpretation could lead to costly and time-consuming litigation.
Do They Hold Their Weight?
A contract is a meeting of the minds. They must demonstrate that you and at least one other person mutually agreed upon something. Upon that happening, everyone involved in the contract carries out their designated role or assignment.
If your contract gets contested (in court or by another attorney), you need your contract to be enforceable. The aim is to hold others accountable for what they have already agreed to. The danger of a DIY contract is that it may not be enforceable.
- Does the contract reflect the current laws?
- Has it been amended to reflect them?
- Are there clear and established conditions that make the contract enforceable?
These questions may be challenging to answer because you may not know the current changes to the laws. Or you can’t say for sure that your contract is in accordance with them. Contracts that violate the law are unenforceable. A DIY contract may unintentionally put you in a compromised position.
Cueto Law Group, P.L.
The Cueto Law Group has extensive experience reviewing contracts and drafting new ones for business owners. Unlike a DIY contract, ours are created to protect you. If a dispute arises, you need a contract that you can depend on. Contact us today to schedule a consultation.
