Whether you are an established business owner or someone embarking on opening their first company, working with an experienced attorney can help you to navigate the legal side of entrepreneurship. Attorney Christy K. Brown has nearly two decades of experience working with clients to help them reach their goals while being legally compliant. Attorney Brown stands out as one of the top African American business attorneys in Houston, TX providing legal services that help you to protect yourself and your company from potential legal problems.
The Importance of Creating Contracts in Business
When running a business you will come across situations where you are making an agreement with another person or entity. This may be the landlord of the space you lease, the vendor you buy supplies from, or even an employee you hire to represent your company. These agreements typically come with a set of understood circumstances, such as:
- How long your lease will last
- How much your rent will cost
- The number of supplies you will receive
- The price of supplies you need
- The wage you intend to pay your employee
- The hours you expect your employee to work
Without written proof, outlining the details and terms of these agreements, it becomes nearly impossible to hold someone liable when they do not hold up their end of the bargain. Setting the expectation and documenting it can protect you in many different circumstances.
HG.org shares the following circumstances in which drafting a contract comes into use:
Proof of details: This is definitely one of the reasons why a written contract is essential for your start-up business or any type of contract –it can legally serve as proof of details on whatever you and the other party have mutually agreed. It provides the ultimate understanding of the agreement between the owners of a company or its investors, about the services rendered by a third party, or payment obligations you need to comply with your hired workers. All these things should be stated in the written contract as legal proof.
Prevent misunderstanding from arising: A written contract is usually produced during a sensitive business venture between parties entering into a business agreement. The main purpose of this formal written agreement is to give each concerned party the chance to read and have a clearer understanding of the terms or conditions, including the personal expectations of each party and what they have come to terms after a thorough discussion. The written contract will also be a reminder to each party that this business transaction should be taken seriously.
Provide security and peace of mind: In any business dealing, a written contract can provide security and peace of mind to all of the parties involved in the transaction. For example, a written employment contract sets forth the terms between the employer and an employee with regards to their duties and responsibilities, payment and overall relationship. An employer is legally responsible in complying strictly with the employee’s wages and other benefits mandated by the law, whereas the employee is expected to perform diligently his or her assigned duties mentioned in the job description. A written contract gives ample protection on the parties involved when the agreed terms or conditions are not followed or are breached.
Guaranteed confidentiality: One of the ultimate benefits of having written contracts in business transactions is the opportunity to agree to confidentiality and non-disclosure provisions protecting sensitive information. As part of the agreement, the concerned parties are legally bound to hold in secrecy the transactions involved and the information shared among them, and the party that violates this confidentiality agreement would be held liable under the agreement.
Avoid expensive litigation proceedings: When a party to an agreement breaks the contract, the written agreement will be used as a general reference on what the parties have agreed and determine who is really at fault. Having a readily available written contract reduces the chances of bringing the issue to litigation proceedings, or even dragging litigation more than it may be necessary, which could be very costly and time-consuming.
Serve as an official record of the business agreement: A written contract is used as an official record establishing what the parties involved have agreed on. For instance, it provides guidance on the level of authority given to owners or managers in the business, completion date of any work contracted to a service provider, payment of work completed, or simply stating the terms on who or when to terminate a contract.
African American Lawyer for Small Businesses in Houston
Our law firm works with small business owners to help them protect themselves and their businesses at every stage of development. Whether you are brand new to owning a business or have an established company, working with a business attorney can offer you peace of mind and help you to reach your business goals. Reach out to our law firm today to learn more about the benefits of working with a business attorney and to schedule an appointment with business attorney Christy K. Brown in Houston.
African American Attorney in Houston, Texas
With nearly two decades of experience, Principal Attorney Christy K. Brown is a No-Nonsense, Forward-Thinking, and Result-Oriented probate, estate planning, and business lawyer, and she’s committed to handling each of her client’s concerns equally, creatively, relentlessly, and in a personal way from the first meeting. Schedule your free 15-minute phone consultation today to learn more about how we can help you through the probate process.