Today we have a guest post fromJosiah Hass of JTH Legal, an Oklahoma City firm working with individuals, families and small businesses:
Whether you're working with a customer, friend, or family member, a well-drafted contract protects everyone involved. It fosters clear expectations, minimizes the chance of future disagreements, and provides a solid foundation for a successful outcome.
Why is a contract important?
Security and Peace of Mind: A well-drafted contract provides a sense of security for all parties involved. You know what to expect and have recourse if things go wrong. The contract itself serves as evidence of the agreement and can be used in court if necessary.
Dispute Resolution: Contracts often establish a process for resolving disagreements, which can save time and money in the long run.
Formalized Agreements: Contracts are particularly important in business dealings. They help build trust, demonstrate professionalism, and can be essential for securing funding or partnerships.
How do I avoid contract disputes?
In Oklahoma, the statute of limitations (deadline) to file a claim for breach of contract is 5 years (3 years for oral contracts) from the date of the breach (or possibly the date you discover the breach). If you don’t have a well-drafted contract in place, you could regret it well after you thought everything with the contract was done.
Hire an Attorney (ahead of time): The best way to ensure you have a legally sufficient contract in place is to hire an experienced attorney to draft it. Many feel involving an attorney is overkill when the deal you want to make appears seemingly simple, but the reality is an attorney will help you avoid future problems by making sure your contracts are clear and cover many of the “what-ifs” you may not have considered.
If you are wondering about ChatGPT or other AI – they're good resources to use as a tool, but they do not draft legally sufficient contracts to ensure you are best protected. No matter what it spits out, you still won’t know if something is missing.
Don’t Be Unrealistic: Set achievable deadlines and commitments for yourself and others. An attorney can help you to negotiate terms that are fair and accurately reflect the project's complexity.
Always Communicate: Maintain open communication throughout the drafting process and during the entire contractual relationship.
Document Everything: Keep detailed records of all communications, agreements, and changes made throughout the contractual relationship. Remember, your obligations in the contractual relationship should be outlined in the contract, so you should refer to it often.
By following these steps, you can significantly reduce the risk of contract disputes and ensure a smoother, more successful working relationship.
Remember: A well-drafted contract is an investment in protecting you, your business, and your peace of mind.
This summary provides a concise overview of important considerations for contracts, and is not to be construed as legal advice for your specific situation. Please contact us if you have questions or need assistance.
Josiah Hass is a business attorney located in Edmond, Oklahoma and services clients throughout Oklahoma. Josiah’s practice has focused on business and estate transactions and litigation for the last 12 years.
You can contact Josiah here to schedule a consultation.
You can also find Josiah on Instragram, Facebook, or on his company website.