A significant amount of business revolves around contracts. Almost every aspect of business can be governed by an agreement signed by two parties that sets out the terms of the agreement and legally binds the parties to those terms. Contracts can be entered into with other companies, vendors, contractors, clients, and more.
An enforceable contract is critical to most business deals because it protects your rights to collect what you are owed under the contract if the other party fails to deliver. It also often sets out guidelines for resolving disputes under the contract. All too often, however, business owners will enter into a contract that is unenforceable and will forgo their rights and/or face unnecessary liability. One common error is in regard to a law called the Statute of Frauds.
Written Contracts Required
Under most circumstances, a contract can be valid and enforceable even if it is merely a verbal agreement. However, the Statute of Frauds requires that contracts be in writing in some situations, including the following that may apply to businesses:
- Real property transactions, such as commercial real estate deals
- Contracts that cannot be performed within one year
- Contracts for the sale of goods worth more than $500
Many business owners work with other parties enough that they become comfortable and begin engaging in verbal negotiations and agreements. However, you should always be aware if the Statute of Frauds may apply to your situation, and if so, you should insist on memorializing the contract in writing. An experienced business contracts attorney can help you draft and negotiate a written contract whenever necessary to ensure your rights are protected.
Consult with a Highly Experienced Houston Business Contracts Attorney Today
At The Weisblatt Law Firm, our business contracts lawyer has advised many business owners regarding the need for a carefully drafted and reviewed contract in most situations. We can review any contracts you are presented or write a new contract from scratch that will specifically address the needs and interests of your business. If you have any questions regarding business contracts, call our Houston office at 713-352-0847 today.