The Role of a Business Agreement Lawyer
Business agreement lawyers are legal specialists who advise business owners and corporate managers in different areas of business agreements, whether in drafting, reviewing, or enforcing them. Business agreements vary from simple transactions, such as sales agreements or purchase of service agreements, to more complex transactions, such as joint venture agreements or licensing agreements. Depending on the type of transaction, business lawyers may address contracts , commercial and banking, business planning and transfer, tax and employee benefit matters. Since the vast majority of businesses in the private sector are unincorporated enterprises, such as limited liability companies (LLC) and other closely held entities, business agreement lawyers must be prepared to advise business owners in all aspects of the day-to-day operations, including contracts employee disputes, labor relations, and real estate and tax issues.
Types of Business Agreements that Lawyers Oversee
Lawyers are often called on to draft business agreements of many different kinds. A partnership agreement is a simple contract between business partners identifying who will contribute what assets to the partnership and what each partner will receive in exchange. A non-disclosure agreement establishes a legal understanding about what confidential information about a business can be shared or kept secret, while a confidentially agreement protects trade secrets by specifying what confidential information cannot be disclosed without prior consent of the disclosing party. A service contract between a contractor and a business identifies the terms under which a business will hire a contractor for a specific task.
Similar to these examples, a non-circumvention agreement is used frequently in business transactions where confidential information about a company may be shared between parties, but the disclosing party is concerned that the information may be used inappropriately or be made public and then used by a competitor. The non-circumvention agreement essentially states that neither party can make contact with, or solicit business from, the other party’s clients, customers, or other contacts, without the written permission of the party who provided the information to the other.
Reasons to Hire a Business Agreement Lawyer
Business agreements are essential parts of any company and strong business contracts will save many headaches in the long run. However, there are real risks of entering into a poorly drafted business agreement.
While there is no requirement that you have an attorney, even some of the more boilerplate contracts present challenges that could end up causing a lot of frustration, wasted time, and lost money. In addition, a bad deal could be signed where the requirements of a transaction were completely missed.
A business agreement lawyer does not have to be expensive because the terms of the document may be fairly standard depending on industry practices and these agreements may be shortened. However, it is imperative that any contract be looked over by an attorney.
There are a number of significant reasons why hiring a business agreement lawyer is vital for your business operations and for your interests. The biggest reason to have an attorney look over a business contract is to ensure that you are in total legal compliance. There are many local and state laws that govern nearly all transactions and controls must be complied with. Experienced attorneys help to advise you on the most effective ways to structure transactions.
The second major reason to have an attorney look over a business agreement is to ensure that your interests are fully protected. This could relate to everything from payments to performance to liabilities. While some types of agreements may seem simple, even the slightest detail can have ramifications.
How to Select the Proper Business Agreement Lawyer
When looking for a business agreement lawyer, it’s important to consider their experience in handling cases similar to yours. A lawyer who specializes in business law and has significant experience with business agreements will be better equipped to handle legal matters specific to your industry. Another criterion for selecting a business agreement lawyer is their specialization within the field of business law. Some lawyers may focus more on contract creation and negotiation, while others may have more experience in litigation and dispute resolution. Depending on your business needs, you may want to choose a lawyer who specializes in the area of law that is most relevant to your situation. It’s also important to read reviews and testimonials from previous clients when selecting a business agreement lawyer. This can give you an idea of the lawyer’s track record when it comes to handling cases and their ability to provide excellent service to clients. Finally, the compatibility of the lawyer with your business needs and goals is another factor to consider. You want to choose a lawyer who understands your business and goals and is willing to work closely with you to achieve them.
Business Dealings and the Lawyer
The process of working with a business agreement lawyer is often logical and fundamental. After initial contact, an attorney may ask for basic information about you and your business. Be sure to bring any existing documents or contracts you have with the third party lawyers, as well as proof of your business’ registration. If you’re starting a business and do not yet have registration, be sure to bring a business plan and ideas about what type of company you want to set up. When consulting with a lawyer it’s important to be honest and provide them pertinent information that they will need to know.
Once basic information is established, a business agreement lawyer will spend time performing any necessary research for your business and it’s proposal . Since they’re consulted on a number of fields and specialties, a good lawyer will be able to help you understand the requirements and obligations of your specific industry. Once the required terms and agreements are set, your lawyer will be able to draft your contract which will include all the details pertaining to your organization. It’s important to note that the contract your lawyer is drafting should be in your best interest.
During the process of finalizing your agreement with a business agreement lawyer, a lawyer may suggest to you that you need moral guarantees or insurance in order to protect yourself and your company. While you may balk at the cost of having to insure or deposit funds in a trust fund, you need to realize that it’s actually in your best interest to do so, especially when getting into a big business venture for the first time.
Advantages of Legally Binding Agreements
When you have a solid business agreement, you benefit in more ways than one. For one, these agreements will protect your business from a lawsuit by the other business. If litigation should ever arise, having written business agreements that are legally sound will help your case. The simple fact that both businesses have signed the agreement shows that both parties understood their roles, agreed to the terms, and then chose to sign it.
Another way these agreements will protect your business is by giving you clear operational rules. Without clear guidelines in written documents, how can you expect the employees or contractors to know exactly what they need to do to help your business function smoothly? Just because something is obvious to you does not mean that it’s obvious to someone who’s not intimately involved with your company. Having it clearly spelled out in a legal document ensures that no one has an excuse to say they didn’t know what they were supposed to do.
In addition to protecting your company from litigation and providing clear operational rules, having these legally sound business agreements will also increase the reputation of your company. Signing an agreement with a sub-contractor gives that contractor the opportunity to ensure that neither party will have to worry about any sort of legal liability. Many people partner with companies that have gone through the trouble to hire business agreement lawyers to protect their rights and investment. It shows a certain amount of professionalism and seriousness about how your company functions that helps boost the reputation in the business community. This provides a competitive edge over the companies that do not take the time to hire business agreement lawyers and have these agreements drafted.
Having a knowledgeable business attorney on hand provides you with many benefits that are difficult to enumerate. A skilled attorney will write business agreements that protect your rights as a company, provide for clear operational guidelines, and help protect your company’s reputation.
Mistakes to Avoid in Business Agreements
Despite all of the efficiencies that can be found these days with business consulting software and online contracts, smart entrepreneurs know that to really protect themselves and their growing venture, they can greatly benefit from using business agreement lawyers and other legal professionals to do things the right way and protect the business from future harm.
Mistake #1 – Not putting everything in writing. One of the most common mistakes a business owner can make is thinking that a verbal agreement is every bit as good as a written one or failing to document the agreement. In truth, it doesn’t matter who is saying what , but rather what you can prove if it comes to that point down the line. Getting an agreement in writing is essential to protecting yourself.
Mistake #2 – Making agreements too broad. Some executives are tempted to leave fuzzy language in their business agreements thinking that it gives them more leverage overall and leaves things open for interpretation. While ambiguity in language is not uncommon in some business agreements, i.e. a nondisclosure agreement, for instance, it’s actually a good idea to make things as clear and specific as possible about who is getting what and when it will be issued or dispersed.
Mistake #3 – Not getting professional assistance. Some business owners are tempted to piece together different forms of contracts from online templates and fill in the blanks to use with their investors, clients, business partners and even employees. However, without fully understanding the ramifications of what you’re saying (as in implied promises, jurisdiction, etc.), you could be putting you and your company at extreme risk.