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Notarizing contracts can help if there is a contract dispute

Businesses in Baton Rouge enter into contracts every day. Whether employment contracts, contracts with suppliers or vendors or any other contract, these days, business contracts are an everyday part of doing business. Unfortunately, inevitable that at least one of a business's contracts will be the subject of litigation, perhaps, a breach of contract.

However, according to one report, a contract dispute could be prevented through one simple task: having the contract notarized. A notary public is a person who is permitted by the state to officially witness the signing of a contract or other type of document. This, in turn, provides a legal guarantee that the entities who signed the contract are the "real" thing.

But, how does notarization help those facing contract disputes? First, by being notarized, the breaching party cannot argue that he or she did not actually sign the contract. This is important as it takes a significant amount of effort to legally establish a person signed a contract. Most courts will state that a notarized signature is automatically valid, and therefore, the contract itself is authentic.

Notarizing a contract is also beneficial because insurance companies usually must bond notary publics. This is important because if the notary public erroneously verified the signatures to the contract, their insurance company may incur responsibility for the damages a business owner suffers, if that error leads the business to come out on the losing side of business litigation involving that contract.

As this shows, there are good reasons to have a contract notarized. Those who have taken this small, but important step, may be thankful they did, should the contract later be disputed. To learn more about how notarizing a contract can be beneficial, one may want to discuss the matter with a business law attorney.

Source: Entrepreneur, "Avoiding Contract Disputes," Accessed May 21, 2017

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