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7 Tips for Avoiding a Contract Dispute

Contract dispute

7 Tips for Avoiding a Contract Dispute

Almost every contract dispute can be avoided by taking precautions in advance and doing your due diligence before signing on the bottom line. Here are ten useful tips to keep in mind when negotiating a contract to avoid a contract dispute down the road:

  1. Consult a Lawyer

You should always hire a lawyer to act as your legal representative and review any and all documents before signing a contract. It is always wise to take a proactive approach and spot any potential loopholes or problems and address them in a friendly manner before signing, instead of in a legal battle should the relationship go south.

  1. Seek Clarification

If there are any terms of the contract that are vague or ambiguous, seek clarification of the issue to avoid miscommunication and misinterpretation. Make sure you and the other party are both on the same page and use transparent language, so there is no confusion.

  1. Don’t Sign if You Don’t Understand

Under no circumstances should you sign a contract that you have not read or do not understand. Your signature is confirmation that you understand and agree with all terms in a contract, which could put you in a tough situation should a contract dispute arise. Always read every contract in full and ask for clarification for any words or sections that you don’t understand.

  1. Complying with the Terms

If there are any terms of the contract that you suspect you are unable to follow through with, it’s important this is determined in advance. Eliminate any terms that are very difficult or impossible to perform, otherwise you may find yourself in breach of contract.

  1. Unambiguous Language

As much as possible, the contract should be written in clear and concise language. The contract serves as a guide for the terms of the relationship, and should be referred to for clarification throughout the process. If written in clear language, this will be much easier.

  1. Rights & Responsibilities

It is extremely important to be familiar with your rights and responsibilities as defined by the contract – but it is just as important to know the rights and responsibilities of the other party. This way you can monitor when your rights are breached or if the other party fails to live up to their responsibilities.

  1. Failure to Comply

Though you go into every contract with the expectation that both parties will live up to the terms, it is inevitable that some relationships will break down. In such cases, consequences for failure to comply should be clearly built into the contract. If things go wrong, both parties will have a clear course of action to address the failure without having to escalate the dispute to litigation.

Even with these precautions, sometimes contract disputes are inevitable if the other party doesn’t hold up their end of the bargain. Contact Mullowney’s Law to schedule a free consultation to find a successful resolution to any contract dispute.

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