There are a number of different contract phases businesses may be engaged in throughout the life cycle of their business. Most business relationships are governed by business contracts. Business contracts require careful negotiation, thoughtful drafting, thorough review and, sometimes, knowledgeable litigation and problem solving if disputes arise. It is important that businesses and business owners are prepared to negotiate, draft, review and litigate business contracts should the need arise.
Contractual relationships, and successfully managing contractual relationships is important to the success of a business. Successful contract relationships help to support both current and future interests of the business and promote the long-term goals of the company. It is important to keep in mind that there can sometimes be complex legal implications when forming a contract or when one has been breached. In addition, different responses to a contract breach may be available depending on the circumstances and goals of the parties for resolution of the dispute.
In addition, there can be different considerations for different types of contracts and different industries, including general business contracts, construction contracts, real estate contracts, financial contracts or franchise agreements. Whatever the industry, it is important to be familiar with contracts in that industry.
If a contract is not properly executed it may not be binding, however, contracts can be written, oral or implied. In business, it is important to understand the implications of each category and how to form a valid contract and how to handle different types of contract disputes should they arise down the road. It is helpful for business owners in every industry to possess strong contract knowledge for a variety of different situations and phases throughout the contract process.