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Are Your Contracts Living in the Past?

 

Regardless of the business industry, size or geographic region, well-drafted contracts are vital to a business’s health. Updating business legal documents, including contract templates, on a yearly basis, is a wise legal strategy to help mitigate legal risks that can be lurking in outdated documents. It is especially important after a major change within a business or a change in the law to help protect a business from potential new liability. 

Despite their importance, many businesses do not have contract templates for common transactions, and mistakenly believe they are immune from legal disputes. If a business does have contract templates, sometimes they are acquired from an online source or friend. As such, they are not always tailored to meet the business’s needs. 

Likewise, other businesses have contract templates; however, they have not been updated in years. Unfortunately, these businesses are under the misconception they are shielded until a dispute arises. At that point, it is too late to rewrite the contract, and the business could incur expensive legal fees fighting the dispute, without a certain outcome. 

Although not every conceivable legal risk can be contemplated or protected against, many legal disputes can be mitigated, or even avoided all-together, with the appropriate contracts. Some important contract templates that most businesses should have, and keep updated yearly, include: 

  • employment contracts;
  • customer contracts;
  • purchasing contracts;
  • purchase orders (PO’s); 
  • warranty agreements;
  • non-disclosure (secrecy) agreements; and
  • technology and privacy agreements. 

Once drafted, sound contract templates can be easily updated on a yearly basis, and are a simple and inexpensive approach to mitigating legal risk and liability. 

 

Disclaimer: This article is for general informational purposes, and is not intended to be given or taken as legal advice. If you have specific legal questions or concerns about your business, you should seek legal advice from an attorney. Choate Law welcomes you to contact us for a complementary consultation to discuss your individual business needs.