New York Business Contracts Attorney
Business owners will be entering into agreements, and therefore contracts, with employees, customers, and vendors on a daily basis. Any fast-growing business will need to be able to draft and retain a library of contracts to meet its business demands.
Some may be tempted to use any regular template found online. However, this may be a mistake as the language by not address all concerns, and it can also have terms that are not applicable to either party. The best way to avoid this is to hire a business contract attorney. Leo Fraser, Attorney at Law, can help draft a legally binding contract for those entering into a business transaction. Further, they will be able to help with any contract dispute that may arise.
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What is a Business Contract?
A business contract, like any other contract, is a legally binding agreement between two or more parties. The contract will govern the business transaction and hold the parties legally obligated to one another through the entirety of the business contract.
One of the parties will draft the initial business contract, which will describe the specific terms of the agreement. The terms will likely include what the parties promise each other, how the promise will be fulfilled, how long the contract will be in effect, what will be delivered, payment obligations, what services are being rendered, and the general layout of any liabilities. The contract will go through a series of negotiations and drafting until both parties have agreed to all terms.
Once the parties have agreed to the terms, they will likely sign the agreement. However, neither a signature nor writing is not required for a contract to be a contract. However, in business transactions, it is always best to write all terms and have both parties sign and date the agreement. This is easier to hold one another to the terms if there are any future disputes.
How is a Contract Formed?
A contract typically entails the exchange of goods, services, or money or the promise to exchange any of these at a specified date.
To be legally binding, a contract must be willingly entered into by the parties and formed in accordance with proper contract law. This means that there must be an offer, consideration for the offer, and acceptance of the offer, and both parties must intend to be legally bound by the contract’s terms.
According to the UCC, an offer is when one party promises to do or refrain from doing something in exchange for something else. The law requires that an offer be stated or delivered in such a way that a reasonable person would understand what to expect if they accepted it.
Consideration is the monetary value that persuades the parties to enter into a contract. Consideration is an exchange for a specified action or inaction where something of value was promised. This can take the form of a significant financial or time investment, a promise to perform a service, an agreement not to do something, or reliance on the promise.
As long as it is specified in the contract, acceptance can be expressed in words, writing, deeds, or performance. In general, the acceptance must be in accordance with the terms of the offer. Otherwise, the acceptance is misconstrued as a rejection or counter-offer. If the terms differ even slightly from an offer, this is considered a counteroffer, which must be accepted by the original party in order to be a binding agreement.
What Does a Business Contract Attorney Do?
Contracts are a fundamental business tool. When properly drafted, they facilitate commercial exchanges by clearly stating each party’s responsibilities. Corporate executives and business owners should seek the advice of a third party before entering into a significant business transaction.
All commercial contracts, including those involving the sale of goods and services, the purchase and sale of businesses, real estate transfers, and employment contracts, are considered business contracts. A business contract attorney will work hard to identify potential risks in a proposed business transaction and will take steps to mitigate those risks. In the event of a contract breach, a breach of contract attorney in NYC may be consulted.
During the contract formation process, a business contract attorney will:
- Analyze any existing contracts and provide legal advice regarding the enforcement of specific terms.
- Draft the initial contract, favoring the terms their client has requested
- Facilitate contract negotiations between the parties
- Review contracts drafted by another party and pinpoint areas of liability and risks
- Revise existing contracts to better meet the terms of both parties
When entering a contract at the business level, it is always necessary to have an attorney review the agreement before signing it. Some business contracts do not have an end date and can be hard to get out of once entered. An experienced business attorney can help business owners avoid entering a contract that will be detrimental to their business’s future.
Types of Business Contracts
Business agreements allow a business to run properly and safeguard owners from liabilities. When operating a business, there are 10s of 100s of contracts that will be used. Each type of business agreement will require a different business contract. Sometimes, the parties have already entered into an agreement, but the terms are no longer satisfactory to either party. In this instance, a contract amendment will be necessary.
Other common examples of business agreements include:
- Bill of Sale (sales agreement)—transferring property between parties
- Service agreement—agreeing to a service (internet, cleaning, software, etc.)
- Employment agreement—every employee should sign an agreement when hired
- Indemnity agreement—releasing parties of certain liabilities
- Master service agreement—simplifies agreements by including the initial terms
- Non-Compete—prevents employees from going to a competitor for a specified amount of time
- Non-disclosure—requires employees or vendors to not disclose certain terms and information to other parties
Hiring a Business Contract Attorney
A business contract lawyer handles the law for many businesses. In general, business contract attorneys will negotiate, examine, and draft contract agreements in accordance with state and federal laws that align with their client’s demands.
New York business contract attorney Leo Fraser, Attorney at Law, will support business owners with all business contract demands and assist their clients in drafting, reviewing, negotiating, and memorializing all contracts.