As a contractor, you’re probably familiar with many types of construction contracts. Sometimes familiarity can lead to breezing through contracts which can come at a terrible cost. Even repeat clients can make mistakes on contracts that can have negative effects for one or both of you. In many cases, this can lead to ruined relationships and steep monetary penalties.
In part one of this article, a Little Rock construction attorney gives the first three tips to make sure your contract review keeps you safe.
1. Have a Written Contract
Sometimes business deals are done with a handshake, but details can fall through the cracks resulting in both parties being unprotected when it comes to legal matters. Verbal contracts are much harder to enforce or prove than paper or electronic contracts. Even if you’ve worked with this client before, it’s important to have a contract to protect both of you and keep your relationship positive.
2. Read the Entire Contract
Contracts are long and often have boilerplate provisions. However, a small mistake or typo could cause trouble later. For example, a key date could be wrong and leave you open to disagreements with your client. It’s best to read the whole contract through thoroughly to make sure it’s all as it should be.
3. Examine Legal Entity Names
Many sections make up a contract and ensure the contract is legally binding. A crucial part of a binding contract is the names of both parties. It’s also important to make sure the other party has the legal ability to sign the contract on behalf of that entity.
Read part two of this article to learn the other four tips.
If you would like to speak with a Little Rock construction lawyer, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.