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What are some methods for preventing contract disputes?

On Behalf of | Jul 24, 2017 | Business Litigation

For business owners in Austin, knowing the proper methods for avoiding contracts disputes is an ongoing concern. A dispute can serve to derail a business’s chance at success, and even result in a costly lawsuit under the right circumstances. Fortunately, there are ways you can prevent contract disputes from occurring, provided you have the right information.

According to Inc., contract enforceability is a huge concern. To this end, getting all contracts notarized can help ensure that they remain enforceable in the eyes of the law. In the event that a contract is disputed at some point in the future, participants will not able to claim that they did not actually sign the contract. Also, when a contract is notarized, those being asked to sign are far more likely to read the document in its entirety.

You should also consider the future of the contract in question. For instance, how a contract will be renewed is just one factor to consider. In some cases a contract will renew automatically, while in other instances it will need to be renegotiated before a renewal can take place. You can also add specific clauses, such as those relating to non-compete terms, which tend to be more complex to execute.

Proper due diligence is another method to ensure a contract remains legally binding in the face of future disputes. Along with verifying that the person signing the contract is who they claim to be, you’ll also want to investigate whether this person actually has the authority to sign. Additionally, performance of due diligence must be an ongoing process if an enterprise wishes to remain free of legal trouble.

 

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