Contracts are the backbone of any business, governing relationships with customers, suppliers, employees, partners, and investors. While many business owners are tempted to sign agreements without legal review—either to save time or money—this decision can lead to costly disputes, unfavorable terms, and legal vulnerabilities. A well-drafted contract protects your business, clarifies obligations, and minimizes risks.
We often see businesses end up in litigation over poorly drafted or ambiguous contracts. It often happens that we find a clear record of what the parties intended to do in email or other written communications, but the contract they actually signed makes some other agreement.
Many disputes arise because:
- Key terms are vague or missing.
- Liability and responsibilities are not clearly outlined.
- The agreement is unenforceable due to legal deficiencies.
Review by an experienced business attorney helps to make your contracts clear, enforceable, and protective of your interests—helping you avoid costly lawsuits in the future.
Real-World Example: The Website Ownership Dispute
In one instance, we were approached by a company that had hired a web developer to build an online marketplace. The company, however, had not retained a qualified attorney to scrutinize their contract. The agreement stated that the web developer would retain ownership of all work product until every single invoice was paid. The company invested tens of thousands of dollars in the project, believing they were securing rights to the website. However, since there was always one more outstanding invoice, the company legally owned none of the work produced.
There were ways to challenge the contract in litigation, but the situation could have been entirely avoided if the agreement had been properly drafted from the start. A simple revision ensuring ownership transferred upon partial or milestone payments would have saved significant legal expenses and frustration.
Litigation attorneys can bring a helpful perspective to your contracts. Drafting a good contract can often take multiple types of attorneys. For example, contract specialists will have forms, language, and drafting experience at their disposal to construct your documents. Tax attorneys can structure payments and exchanges in ways that can save you significant sums. Litigators bring experience in attacking, defending, and interpreting contracts in ways most beneficial to their clients. Involving a litigator early in the process can help you identify the potential issues long before they occur.
When Should You Have a Lawyer Review a Contract?
You should always involve an attorney when drafting agreements such as:
- Business partnership agreements
- Employment contracts and non-compete agreements
- Supplier, vendor, and client agreements
- Lease agreements for commercial property
- Intellectual property licensing and assignments
- Merger, acquisition, or investment deals
- Any contract with significant financial or legal implications
Even if a contract appears straightforward, small details can have major consequences. Involving a trusted litigator and advisor early in the process can help ensure that your agreements align with your best interests.
