Contracts are a key requirement for any business for all kinds of dealings. Without a written...
Contracting parties in Nevada should make sure they understand the provisions and terms of an agreement before signing. Parties rely on well-drafted contracts to clearly define their obligations and how potential disputes will be handled. The terms should be specific and define everything. The specific obligations each party has to the other should be listed. The payment terms should be listed, and details about handling disputes should also be included. Understanding all of the terms before signing can help parties to protect themselves.
What to Consider When Creating a Contract
When drafting a contract, a party should consider several things to ensure the contract terms work. If a contractual provision does not work, the party should try to negotiate more reasonable terms.
The parties should review the proposed time frame of the contract to ensure that they will be able to meet their obligations and that it conforms to their needs. The exact scope of work/services should be considered before establishing a completion date.
Prices should be clearly listed. A party should be careful of any additional charges that have not been previously discussed. If extra work might be necessary, a party should ask how the listed prices might change and include a provision about them.
The parties should consider the payment terms to determine whether they are appropriate for their situations. For example, a party might not want to agree to a contract that calls for payments at the same time that the company’s other bills come due. Late payment penalties should be reasonable and clearly defined.
Prior oral agreements about goods or services should be memorialized in the written contract. Once a written contract is signed, prior discussions will be unenforceable. It is crucial that all material terms be included and unambiguious.
Any process described in the contract should be understood to ensure it conforms with all industry regulations and laws. If the parties cannot agree to the final terms but must begin work immediately, they might create an interim agreement that will only last until a permanent contract can be negotiated.
Finally, the parties should understand how any potential disputes will be handled. Some contracts contain arbitration clauses, which mandate that disputes are handled through arbitration instead of court. It is important to understand the implications of an arbitration clause and the fact that a party might be waiving its right to a jury trial. Some contracts will have mediation provisions that would require a mediation to occur prior to any litigation. Methods of resolution should be carefully considered and negotiated so that they do not unfairly benefit one party over the other.
It is beneficial to have an attorney review any complex contracts prior to signing.