Why it is important to have business contracts that are easy to understand

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Nobody likes contracts loaded with jargon. It can make simple sentences difficult to understand, and can cause confusion when it comes to business deals and employment. In some cases, it can even get you slapped with a lawsuit. Needless to say, if you want to avoid disgruntled employees and angry clients, then it is worth making sure you use clear and easy to understand business contracts.

Clear contracts help protect your business

Fighting a lawsuit can be time-consuming, expensive and very stressful. In addition, if word gets out, it could seriously damage your company’s reputation. Clients and potential business associates will be reluctant to do business with someone they think is dishonest or disingenuous. In addition, protecting your firm’s good name could cost draw dropping amounts of money especially if there are several lawsuits to deal with. Arranging for contracts to be drafted that are well written and easy to understand will help prevent any nasty surprises in the future for both you and anyone you do business with.

Clarity helps everyone understand their obligations

It is important that a contract detail everything that the parties involved are expected to do. They should explain in writing important details like the exact hours an employee is expected to work, what benefits they will receive and when they will receive them, trial periods and job responsibilities. Similarly, a clear client contract will explain in language that is easy to understand what your obligations are, what their obligations are in terms of payment and what you will need from them in order to complete your job.

If you are a building contractor this will probably include: access to their property or properties, the time needed to complete the job, and any additional cost of materials. If you are offering a product, then be truthful about what the customer(s) will receive, its condition, and when they will receive it. Additional charges should be clearly stipulated in writing. A contract should be tailored to suit your business and the people involved.

It means everyone is happy

An easy to understand contract protects everyone involved. It assures employees that they have work for a set amount of time or ongoing, so they have  a sense of job security. It gives peace of mind to business partners or associates as they have confirmation of what is expected and how you will work together, and it gives customers certainty that you are obliged to provide the service or product you promised to provide. From your point of view as a small business, contracts ensure that you know where you stand when it comes to working, employees, and partners. You have it writing so everyone is legally obliged to keep their word.

It is safe to say that well-written contracts can save a lot of stress and uncertainty so it is worth ensuring they are properly drafted by a professional. Explain to your appointed attorney what you want and let them give you their advice too. If you are concerned about the clarity of existing contracts then it might be worth getting them redrafted too. Contracts are not an area worth cutting corners on.