Business contracts are vital to the success of nearly all companies in Houston, Texas. Despite this, developing contracts are also one of the most overlooked parts of operating a business.
Typically, entrepreneurs fail to think much about a contract until they suddenly need one. Then, they often use an online contract or other cookie-cutter solution because their need is immediate.
Ready-made contracts come with ready-made problems
Cookie-cutter contracts probably do not contain provisions that can protect you and your business interests. Most of them also have legal errors that could harm you in a contract dispute. Finally, ready-made contracts may also contain incorrect words that the other party could use against you in a conflict.
Why is wording so important?
The English language is filled with words that sound alike but have multiple meanings and spellings. It also contains words that work in one context but not in others. Choosing the right words can do more to protect your business interests than you may believe. Look at the two examples below for additional clarification:
- Ensure and insure: “Insure” means to guard against a loss, while “ensure” refers to making certain of something. Business contracts sometimes contain both words, so it is vital to choose the right one.
- Semiweekly and biweekly: The word biweekly means every other week, while semiweekly means twice a week. When specifying payment details in a contract, using the wrong word could impact your business finances. For example, if an employment contract states that pay occurs semiweekly, your workers may rightfully expect to get paid twice a week instead of every other week.
A solution to help you prevent misunderstandings over poor word choice is to avoid using ready-made contracts and consider having your contracts reviewed for correctness. Reaching out for additional information about contract law in Texas can also strengthen your formal business agreements.