Contracts are the cornerstone of doing business in New York. Entering one means you and the other party agree to fulfill certain obligations to each other. Though some contracts may be created informally through a handshake or orally, they are ideally well-negotiated written documents that clearly define each party’s responsibilities. Whether you’re negotiating, reviewing, or drafting an employment contract, contract for sales of goods, professional services contract, supplier contract, or any other type of agreement or contract, there are some best practices you should observe every time to protect yourself and make sure you’re signing a document that meets your needs. The talented team at MOWK Law can help.
What to Ask
It’s important to ask the right questions when forming a business contract to avoid lawsuits, a slowdown in conducting business, or loss of income – here are questions to consider when negotiating any New York business contract.
- Do all the terms of the contract comply with legal requirements in New York?
- Have all contract terms and conditions been set out completely and clearly?
- Has the contract defined what constitutes a material breach and clearly set out all related penalties?
- If it benefits you, have you included a clause mandating binding arbitration and/or a choice of law clause?
- Would you benefit from including a confidentiality or nondisclosure agreement or a non-complete clause? If so, has it been set out clearly in the contract?
- Have you included considerations to address an unexpected change in circumstances or allow for the growth of your business?
- If you did not draft the contract, did the other party include boilerplate language, undiscussed terms, or any other unfavorable language or terms that are detrimental to you and need to be removed or altered?
- Is the contract consistent with your business’s strategies and goals, and will it help you fulfill them?
- Are there any concerns about the other party’s willingness or capacity to fulfill any terms of the contract?
Your business contracts define your relationships with other companies, service providers, clients, employees among others – these questions will help you ensure a thoughtful, strategic legal agreement is the result of your negotiations. It’s important to consider how the contract will help you further and protect your interests for both the short and long term.
New York Business Transactions Lawyer
Your business is an asset and should be something you care about greatly– this is why it’s important to take proper precautions and approach committing to any contract with care. To make sure you’re protecting yourself and your business, as well as doing the right amount of due diligence, it’s a wise idea to speak to an experienced New York business transactions lawyer at MOWK Law before entering any agreement. We will work to make every contract achieve your goals and protect your interests. Contact us today to have your questions answered and get started today.