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Hunt Pennington Kumar & Dula PLLC

Beneficial Legal Guidance for Your Business Contracts

Business Contract Solutions | Hindi Speaking

THOROUGHLY CONSIDER THE LIFE OF THE AGREEMENT UNDER DIFFERENT SCENARIOS

To start with, conjecture execution. Each agreement should answer the following six inquiries:

  • Who is committed to perform
  • what is the commitment
  • by when should the commitment be performed
  • where will the execution happen
  • how is the commitment to be performed
  • if execution includes cash or products, what amount?

Second, imagine nonperformance and default. The agreement ought to ensure your customer by expressing a solution for the potential default of every commitment. Default arrangements contained in most frame contracts are seldom satisfactory, and they for the most part don’t follow the gatherings’ aims; the cure of the default arrangement is normally end of the agreement, and for some ruptures the nondefaulting party still does not want to end the authoritative relationship.

Think about the most dire outcome imaginable. Expect that the gatherings become hostile toward each other, looking to undermine the other party at each opportunity. Will the agreement give adequate direction to oversee the relationship? Will it give adequate direction to a court translating the agreement or forcing cures, if important?

We enter into contracts on a daily basis. Working on a job in return for wages or a payment is an example of contract where one party is providing services and the other party in exchange is providing the financial payment. Purchasing an item at a store is another example of a contract where a person receives certain goods in exchange for a payment. As opposed to such simple contracts, businesses often deal with more complex contracts related to varied types of agreements such as provisioning of services, purchase of goods, terms of employment, leases, financing agreements, loan agreements, confidentiality and non-disclosure agreements, licensing agreements, purchase and sale agreements and myriad other types of contracts.

The term “contract” often refers to a written agreement. However, there can be valid oral contracts as well. A written contracts generally includes a number of elements:

  • Recitals or introductory material
  • Key terms definitions
  • Agreement purpose
  • Obligations and liabilities of each party
  • Triggering conditions for certain liabilities or events
  • Warranties, representations, or covenants of each party
  • Dispute resolution mechanisms such as arbitration, mediation, courts with jurisdictions and applicable law for dispute resolution
  • Remedies available to each party including any liquidated damages
  • Certain boilerplate provisions
  • Exhibits, annexures and schedules
  • Signature blocks

ALLOCATION OF RISK

Contracts are meant to detail the expected behavior between the parties to the contract and is a means of allocating the risks, benefits, liabilities, and constraints between the parties. These terms are generally only relevant when something goes wrong and the parties look to the contract to impose liability on the other party.

Many of these clauses and the language of the terms can look innocuous until something goes wrong and they often prove to be very costly. It is important for a party entering into a contract to understand the consequences of these terms and conditions and have a clear understanding of the risks and benefits of such clauses.

Generally, in business, it is almost impossible to take zero risks and still get a reward. Therefore, businesses often agree to enter a contract with unfavorable terms, which can be acceptable if so dictated by the business, but it should be done with a knowledge of the consequences and proper weighing of the risks-rewards involved. Entering a contract which may have hidden time-bombs or where a party does not fully understand the consequences can be a costly mistake.

Therefore, it is very important to consult with a trusted legal advisor who can ensure that the contract is fair, educate you on the consequences of the various clauses, help you to negotiate the terms to protect your interests, and as a consequence help you to make informed decisions and avoid unnecessary future liabilities while providing you mechanisms to enforce your rights against the other party to the contract.

Our law firm can advise you as a business owner, entrepreneur, manager, or an individual with most business law-related contracts and provide legal advice for services such as start-up assistance, including the formation of an entity, contracts and agreements needed for the business operations, protection of a trademark, license of intellectual property, agreements required in the process of buying or selling a business, etc.

NEGOTIATING A CONTRACT

Negotiating a contract is a process wherein each party agrees upon the material terms of their agreement and tries to maximize its rewards and reduce its risks. Terms of a contract between parties can easily be divided into two distinct parts – the business terms and the legal terms. In general, it is advisable to agree upon the business terms prior to negotiating the legal language that reflects the business agreement as negotiations tend to take longer and may result in failure.

It is often a common occurrence where a business deal hammered out between parties fell apart during legal negotiations between the parties’ lawyers. Often, the different perspectives of a business owner and the lawyer can be blamed for this. A business person negotiating a deal is generally optimistic and often more focused on the rewards, whereas the lawyer is trying to envision the worst-case scenarios and trying to remove all risk and liabilities for the client. Principal attorneys in our firm have been business owners and entrepreneurs, and they understand the balance between the risks and rewards and endeavor to educate the client on the consequences so as to allow the client to make an informed decision on the level of risk the client is willing to take for the associated rewards.

Negotiating a good deal requires you to understand the other party, their goals, their alternatives, their positions and options so that you can find the optimal agreement point which is most favorable to you but still acceptable to the other party. Our attorneys can play the role of the negotiator on your behalf to achieve the most favorable terms for you in your contract negotiations.

Our past experiences enable us to look out for your interests and help negotiate a contract which is advantageous to you, provides the optimal risk-reward balance, and protect your interests by mitigating risks.

TYPES OF CONTRACTS

Our attorneys can review, draft, and negotiate contracts related to various business activities:

  • Buy-sell agreements
  • Service contracts
  • Releases and waivers
  • Property agreements
  • Shareholder agreements
  • Company operating agreements
  • Lease agreements
  • Confidentiality and non-disclosure agreements
  • Employment agreements
  • Non-compete agreements
  • Licensing agreements
  • Investor rights agreements
  • Placement agreements for fundraising
  • Numerous other common business contracts

If you’re in need of a business contract, get in touch with us. You’ll have a trusted advisor on your side looking after your interests and help you avoid future liability.

Hunt Pennington Kumar & Dula PLLC

Call Now For A Free Initial Consultation
(512) 766-6082