Starting a business requires a substantial investment in time on the part of the entrepreneur. The latter is quickly called upon to make many decisions and to coordinate the various tasks to be performed in order to ensure, as much as possible, not only a successful start, but also the healthy growth of the company. It is always in the entrepreneur’s and his company’s best interest to fully understand that the decisions he makes, and the actions that he takes, will have legal consequences. Moreover, even if the law provides that most contracts can be concluded verbally, this practice is not recommended given that, in the event of a conflict, it will be much more difficult to prove what the actual agreement between the parties is.
Both the negotiation and the drafting of contracts should not be underestimated by the entrepreneur. Deficiencies or omissions in the drafting of contracts represent, in many cases, the main source of conflict between parties. It is therefore essential that the contracts entered into by the company faithfully represent the agreement made between the parties.
Effective and comprehensive contracts that include all the elements negotiated between the parties will minimize the risks that may arise from their interpretation. The terms used are particularly important and should not be confusing. A well-written contract clearly stipulates the rights and obligations of the company, while mitigating the risks to which it is exposed.
Each type of contract is different and should contain all the essential clauses related to its purpose. A lease, a contract of employment or a sales agreement each have their own distinctions. Thus, when drafting these agreements and contracts, it is necessary to ensure that all the required clauses are provided for, and that they meet all the criteria established by the law.
The signing of the first contracts is a crucial step in the development of all companies. As such, the efforts made in the negotiation and drafting of contracts are an investment that should not be overlooked.
By Georges Jebara