Most business leaders in Florida are familiar with the basics included in contracts with vendors, suppliers and other business associates and partners. And, they know that a solid contract is the basis of any good business relationship. Since these documents govern the dynamics of these relationships, they need to be drafted correctly.
From the beginning, any good contract should correctly and specifically outline the duties and responsibilities for each party to the contract. For example, one party may be obligated to produce and supply a certain amount of inventory to the other party at a certain pace, while the other party is obligated to pay a certain amount at specific times for that production and supply. In many cases, the more specific the contract is about roles and responsibilities, the better.
But, beyond the roles of the parties, business contracts should also outline specific protections involved in the relationship. If one party fails to “live up to the bargain,” what are the remedies? Many contracts will direct the parties to somewhat informal attempts to resolve disputes, but the usefulness of litigation in court should not be underestimated when business contracts are being drafted.
In the end, most business leaders hope that their company’s relationships with other businesses go smoothly, with rarely a need to refer to the contract after it is executed. However, when disputes arise, the contract is usually where the parties will look for answers. Our readers should be sure their contracts are solid if the worst-case scenario arises.