At the Cortez Law Firm, PPLC, we understand how important contracts are to the success of Texas businesses. Any important terms left out or written unclearly could cost you, so it is important to ensure that you have all the elements necessary for an effective agreement.
Here are some standard contract terms that protect both parties, according to FindLaw:
- Each party’s duties
- Each party’s rights
- Dates, including beginning and completion requirements, deadlines and payment due dates
- Money matters, such as amount and methods of payment, late fees, interest and taxes
- Confidentiality requirements
Your contract should also include any liability limitations for both you and the other party, as well as liquidated damages, indemnification agreement and disclaimers.
If you and the other party have a dispute, you probably do not want to immediately head to court. After all, this can be expensive, time-consuming and, sometimes the worst side effect of all for a business, public. Sometimes litigation is unavoidable, but you may want to ensure that it is the last resort. You can include an alternative dispute resolution clause stating that you and the other party have to attempt to work things out through mediation and/or arbitration in lieu of a lawsuit.
A severability clause is another common inclusion in business contracts. This states that if one of the provisions of the contract becomes unenforceable or otherwise invalid, it does not nullify the rest of the contract. Typically, these clauses include a requirement that both parties do whatever they can to come up with a replacement provision that is as close as possible to the original.
Because every contract is – or should be – unique, there may be many other terms and provisions that suit your needs. More information about business contracts is available on our webpage.