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Every day, Houston business owners conduct transactions that call for the exchange of vast amounts of goods, services, and finances. They complete many of these transactions without complications—but not others. When ambiguities arise, the parties can waste time and money attempting to resolve the issue. A clear, enforceable written contract can prevent many of these problems before they ever arise. Learn more about the benefits of written contracts, and why handshakes simply don’t offer businesses sufficient protections in their transactions. Experienced business contract attorney Andrew Weisblatt offers a wide range of consulting and contract drafting services that will offer business owners comprehensive protections.
The greatest obstacle to “handshake” transactions is the ability to enforce them. If one hand to the shake decides not to perform contractual duties, the other one may have no recourse. The party can be sued for breach of contract, but the plaintiff will then have to convince a court that the existence of a contract should be inferred from the parties’ conduct. This can be difficult to do successfully. Even if the plaintiff can convince the court that a contract exists, he must then prove the defendant’s contractual obligations under the implied contract, and that the defendant failed to meet them. In many cases, it is difficult—if not impossible—to prove what oral agreements different parties made for purchase price, delivery date, type of goods, and other critical contract provisions.
Even if the existence of the contract can be proven, informal “handshake” agreements expose a business owner to the logistical problems of ambiguity in contract terms. Confusion over the delivery date can leave a company without goods to sell its customers. Errors in the parts to be shipped means that a business is unable to assemble complete units, and thus unable to ship on time. These are very real problems which cause unnecessary financial losses.
Other financial losses are also incurred unnecessarily. Lawsuits are both costly and time-consuming, and even the winner is left to bear his own attorney’s fees. Alternative dispute resolution—such as mediation or arbitration—is less costly than litigation, but it is still an unnecessary expense. Even time spent attempting to resolve the conflict with the other business owner is an unnecessary expense to the company.
You can prevent all of these losses with a clear, enforceable written contract that leaves no room for ambiguity in each party’s contractual obligations.
For more than 25 years, Houston business owners have trusted attorney Andrew Weisblatt to draft clear, enforceable contracts to prevent the time and expense of ambiguous transactions. The Weisblatt Law Firm also offers consultations on the best practices for business transactions, and how to minimize the risk of loss in contractual relations. Call (713) 352-0847 or email us through our online contact form to schedule your free phone consultation with an experienced Texas business attorney today. We will help you access the tools that will best protect your business in all its transactions.