Companies grow by amassing profits that are usually derived from business deals. You can agree to borrow money at a specific interest rate or sell stock to new shareholders. You can hire great employees or agree to merge your company into another. These deals are based on contracts memorializing the parties’ benefits and obligations.
If a business associate has presented you with an agreement you must sign, or if you need documents for others to move your business forward, an Atlanta contracts lawyer can assist you. Let an experienced attorney at Sparks Law review or draft the agreements you need to achieve your business goals.
Contracts are crucial to a smooth-running business because they are written evidence of the parties’ agreements. The language must be precise, as contracts should be the final word concerning the parties’ intentions if disputes arise. Written agreements can be beneficial in all areas of business, and some common types of contracts our Atlanta attorneys handle include:
Almost any exchange in which two or more parties agree to terms should be put down in writing. Contact a local contracts lawyer at Sparks Law to ensure a document is accurately and clearly written.
Contracts must contain the basics, such as identifying the parties and what constitutes a breach. Most importantly, a contract must contain a legal concept called consideration.
Legally, consideration refers to what parties to a contract surrender in exchange for something else of value. In an employment contract, the employer gives up money to get a good employee, who exchanges time and talent for wages. Contracts are rendered invalid if the consideration is illegal. For instance, a coin dealer cannot contract to purchase coins known to be stolen.
Georgia courts occasionally enforce contracts based on the exchange of promises alone, but only if the party seeking enforcement performs an act relying on the other person’s promise. One example may be a retailer who spends lavishly to promote a clothing line the manufacturer promises but never delivers. However, it is always recommended for a nearby contracts lawyer to draft or review any business agreements to ensure that consideration is properly included.
Contracts can be unenforceable even with valid consideration, according to the Official Code of Georgia §11-2-302. The courts have a choice to strike invalid clauses and enforce the rest of the contract or render the entire contract unenforceable. Unenforceable contracts are based on fraud, signed by a person who is not mentally competent to understand the agreement, or based on coercion, such as an imminent threat to a signor who would otherwise decline to sign.
Contracts put what the parties want and negotiate for into writing. They should be fair to all parties with no element of fraud. The lawyer drafting the contract should include remedies for breaching it, such as releasing a party from liability or payment of liquidated damages by the breaching party.
A confidentiality clause should protect sensitive information and specify a time, after which negotiations end and the parties are free to pursue other deals. Naming a venue to settle disputes should include whether arbitration, mediation, or litigation is acceptable to the parties. Contracts usually contain many subtle points, so it is important to work with a skilled lawyer when drafting or reviewing them.
Contracts are meant to foster successful business deals and prevent future problems and disputes. They are defining documents in business deals and allow a company to legally address any breaches.
Your handshake is not enough to ensure that the agreement you made will be upheld. Speak with an Atlanta contracts lawyer to learn how we can help your business and draft enforceable documents. Call Sparks Law today for your consultation.