Contract attorney analyzing the paper

What Are the Key Elements of a Strong Business Contract?

An effective business contract can help you protect your business and achieve your economic goals. Consulting with a knowledgeable South Carolina contracts attorney can help you understand the risks you expose yourself in the course of building a business. Numerous elements can improve business contracts and make them more reliable for both parties. 

Identifying All Contracting Parties

A contract should identify the parties to a contract and their legal relationships with one another. Business contracts should include explicit and detailed language regarding the liabilities of the parties and their corresponding legal duties. No parties should be excluded from the business contract. 

The Business Contract Should Be In Writing

Specific types of contracts must be in writing to satisfy the statute of frauds. However, all business contracts need to be explicitly set forth in writing. Some contracts which must be in writing to be legally valid include contracts for the sale of goods of $500 or more, contracts for an interest in land, and contracts that cannot be performed within one year. Speaking with a knowledgeable business lawyer is the best way to obtain a clear, effective contract that will protect your economic interests and your legal rights. 

The Purpose of the Contract is Explicit 

The purpose of the contract should be explicit. All parties to the contract need to understand their duties and what they need to do to fulfill their contract obligations. Ambiguities regarding the purpose of the contract can cause problems at a later stage when a party does not want to perform according to the contract terms. The specific terms of the contract need to be expressed in clear language, and having their terms set forth explicitly can help you avoid contract disputes at a later point in time. 

Non-Disclosure and Terms of Confidentiality 

Non-disclosure and confidentiality are important terms in some business contracts. If a company does not want to expose trade secrets to competitors, then it may be necessary to have contracting parties sign a non-disclosure agreement. A skilled business attorney can help you draft clauses and separate agreements that can protect you and your business organization from liability and other forms of risk. Non-disclosure agreements are common in contracts concerning patents, copyrights, and other forms of intellectual property. It may be necessary to include specific terms with the non-disclosure agreement to help the other parties understand why a non-disclosure agreement is necessary. 

Identifying Remedies Within the Four Corners of the Contract

An effective business contract should include a section devoted to remedies. Legal remedies are the tools used to make one of the parties whole if a party breaches the contract or does not perform according to the terms specified in the contract itself. 

A party may want to include a liquidated damages clause that specifies the exact amount of damages that will be owed if one of the parties breaches the contract. It is vital that you speak with a skilled business attorney so you can understand the different remedies that may be included in a contract. Contact us today to learn more.

From law offices in Florence and Myrtle Beach, South Carolina, Willcox, Buyck & Williams, P.A. serves Myrtle Beach, Surfside Beach, Garden City, the Grand Strand, and other communities throughout Florence County, Marion County, Horry County, Darlington County, and Georgetown County.