A contract is a legal agreement that gives you rights and obligations. However, in order to give you the protection you need, a contract must clearly spell out all the necessary terms. Here are some important clauses that you need in a contract.
Scope and Duration
Perhaps the most important clause is the one that defines what the contract is for and how long it may last. You should have a clearly defined scope that has consideration (each party must either be doing something for the other or waive the right to do something).
Governing Law and Dispute Resolution
A contract should clearly specify which state’s law applies and where disputes will be brought. The document should also have a mechanism for resolving disputes outside litigation. For example, you may consider mandating mediation if there is a disagreement.
A contract may not last forever. There may be times when it is not practicable to continue performing it. In other cases, one party may not be living up to their obligation. The agreement should lay out a mechanism for terminating the agreement under certain circumstances.
One or both parties may have proprietary information that is involved as part of the contract. You will need provisions that protect your intellectual property and trade secrets to ensure that they are not exposed or used for an improper purpose.
There may be some extraordinary reasons why contract performance may be impossible. The force majeure clause defines when contract performance may be discharged because of certain circumstances.
Contact an Atlanta Business Contracts Attorney
You should have an employee help you draft or review a business contract to ensure that it will be correct and clear. Call Battleson Law LLC at 470.766.0811 or send us a message online to speak with an attorney.