Why Should You Hire a Contract Lawyer

Why Should You Hire a Contract Lawyer?

Who Are Contract Lawyers and What Do They Do?

In the competitive and fast-paced world of the present, there is a need to organize our affairs. Our relationships and alliances must be regulated by a well-defined, clearly stated code. The demands and obligations of all the parties must be considered and kept in the record. Well, contracts help us do just that. It would not be an exaggeration to say that modern society is built on contracts. From employment at a minimum wage to the merging of two multi-million-dollar companies, all formal relationships are regulated by the agreements we make with each other.

However, if you read even the most basic employment contract, you will quickly realize that the language in it is nearly impossible for the average person to comprehend. Knowing this, just imagine how much legal jargon a business must need to deal with when forming a contractual relationship with another company. This is where contract lawyers or counsels come in. These lawyers, as the name suggests, specialize in drafting, proofreading, and analyzing contracts. Contract counsels make sure that your demands are being manifestly stipulated and your obligations are being reasonably determined. You can hire contract lawyers from our website, Trademark Counsels, and get the assistance you need to draw up your contracts.

The Definition of a Contract

The legal meaning of the term “contract” is slightly different from its common one. Generally, we take it to be synonymous with an agreement; however, in law, it refers to a special kind of agreement. A contract is an agreement or a set of agreements wherein the stipulations are enforceable. A contract is considered “valid” when it is legally binding and enforceable, i.e., if it is breached, the violator is liable for any harm incurred by the other contractees.

The Essential Features of a Valid Contract

The US contract law is derived from two sources: statutory law and case/common law. In light of this law, an agreement or promise will be considered a binding contract only if it meets the following criteria.

1.      Offer

One entity, the “offeror”, approaches another, the “offeree” to put forward a proposition called the offer. It usually involves doing something, refraining from doing it, or exchanging things. Whatever the case, the particulars are clearly stated in the terms and conditions. For example, if a food company wants to buys a bakery, they offer a certain sum to the owner. In the contract, it will be mentioned that after the sum is paid, the ownership will be transferred to the company.

2.      Acceptance

The offeree accepts the offeror’s proposal. It means that the former is also willing to initiate the contract and abide by its terms. This willingness or affirmation can be expressed orally or in writing. He or she might sign a document, agree over the phone, shake hands, or send a letter of confirmation. Basically, any means can be used to do this. In our example of the bakery, the previous owner would likely sign a hard copy of the contract to show acceptance.

3.      Competency

The offeror and the offeree must have the capacity to make the offer and accept it, respectively. Here, the words “competency” and “capacity” can be applied both in the mental and legal senses. For instance, a person who is not sound of mind and cannot understand the meaning of the offer cannot accept it. An underage individual cannot enter a contract of employment. Similarly, a person who is not the owner of the property does not have the legal capacity to sign the contract to sell it.

4.      Consideration

Consideration is a formal way of saying that all the entities that enter the contract should be getting something out of it. This “something” should be real and have value. Its value can be monetary, functional, or even sentimental. For example, purchasing jewelry, hiring services, and buying back a lost heirloom are all different forms of consideration.

The idea of “mutuality of obligation” is closely related to that of consideration. It refers to the concept that all parties must hold up their ends of the bargain. The conditions of the contract are legally enforceable not for a select few but for all the involved participants.

5.      Mutual Consent

The offeror and the offeree must be entering the contract of their own accord. Neither of them should be coerced or fooled into it. In this regard, the concept of “consensus ad idem” is very important. It is also called “uniformity of wills” or “meeting of the minds”. It essentially means that they must agree on the same thing in the same sense.

6.      Certainty

The points in the contract must be unambiguously defined. Vague terms and sloppy writing can lead to misunderstandings, sowing the seeds of future conflict. Equivocal language can also make “meeting of the minds” difficult. In matters of litigation, misleading contracts have a much higher chance of being declared void.

7.      Possibility of Performance

Both the offer and the consideration should be practically possible. Terms that require impossible things to be done render the contract null. For example, if a contract is signed between a Texan retailer and a Californian supplier for the purchase of goods, the conditions cannot include the delivery of goods in ten minutes!

8.      Legal Purpose

The object of the contract should be permitted by law. An entity cannot be contracted to perform an unlawful act. If an illegitimate term is included in the contract, it automatically becomes void.

Although there is no general restriction that makes it compulsory for binding contracts to be in writing, some specific contracts have unique legal formalities that might require that the document be written. For example, the contracts of real estate matters exist as written documents.

The Reasons for Hiring a Contract Lawyer

Many free DIY contracts are available on the internet. Anyone can edit one of the templates to suit his or her needs and use it as a contract. However, these contracts are very generic and non-specific. They will most probably not cover the particular interests of your company and expose it to future exploitation.

Cheap contracts are bound to have loopholes you will not be able to identify. Only a professional contract lawyer will be able to draft an air-tight contract that meets all your demands. If you are still not convinced, take a look at some of the most common reasons people decide to hire a contract counsel.

1.      To Have a Clear Understanding of What the Contract Entails

A contract is usually a long document containing all the terms and conditions the different parties agreed on. The document is hard to go through because of not only its length but also the use of technical terms and complex sentences. Even if you manage to read it from beginning to end, you will probably not have understood it fully. You can google a word or two, but no search engine will inform you about the nuances that make an important part of its meaning. How will the meeting of the minds be possible if you do not even know what the contract entails?

Bear in mind that 44% of small-scale companies, on average, get dragged into lawsuits every year. In most of these cases, the person filing the suit does not intend to cause you unjust harm. These contractual conflicts arise from misunderstandings. The parties interpret the contract differently. One of them does something that the other considers a breach of their contract. Thus, resulting in unnecessary confusion and legal proceedings.

2.      To Be Aware of and Preferably Avoid Any Liability Problems

Prior to entering into a contract, both the groups should know their obligations and what things they will be held liable for if they fail to abide by the conditions. These points should be clearly stated in the text of the contract. If one party is unable to realize the extent of liability coverage, they could be taken by surprise later.

Moreover, if the contract is ambiguously written, it could be abused to increase your liability in the event of legal action.

3.      To Check the Contract and Ensure it Enforceability

A valid contract is one that is enforceable by law. If you sign a non-enforceable agreement with another entity, you practically afford no legal protection. The same is the case when one or more of the key elements (which were mentioned earlier) are absent. Such a document might not even be considered a contract but merely a non-binding agreement.

This needs to be avoided at all costs because the entire purpose of making a contract is to establish a firm position and guarantee that certain things will happen in a certain way. Without this insurance, you might as well be making a pinky promise. A contract lawyer can go through an existing draft or write up a new contract to ensure that it is legally binding.

4.      To Make the Contract Comply with the Relevant Laws

An important feature of a contract is legality; all terms must be lawful. You might be thinking that this much should be obvious. Well, it is, but many still fail to fulfill this requirement because, in addition to federal laws, the laws and policies of the particular states and counties must be kept in view while drawing up a contract. The matter becomes more involved for companies operating in multiple states, or even different countries.

Since the DIY contract templates found online are usually outdated, they do not comply with many existing laws. A contract counsel well-versed in recent amendments in statutory law and new case law can be of benefit to you here.

5.      To Have a Fresh Set of Eyes and Different Viewpoints

Every word and punctuation mark in a contract holds significance. No part of a good contract is extraneous. You might be an experienced businessman or even a lawyer yourself who has made many a contract. Still, you might miss an important detail or fail to fathom the potential consequences of a certain term. It is always a good idea to hire a contract lawyer to review your contract and suggest modifications accordingly.

He or she can offer advice on what could be omitted from or added to the contract. Your contract counsel can assess the conditions, predict possible bad scenarios, and put in provisions to keep you safe from these scenarios.

6.      To Take Legal Action Against a Violator if Needed

When another contractee sues your company or you decide to sue them, litigation can become complicated and ugly. Be it the result of misconstruction or an evident breach of contract, the lawsuit is best handled by a professional attorney, preferably a contract lawyer. He or she can determine your options, weigh their relative pros and cons, and help you decide on one of them.

A contractual dispute usually involves arguments in favor of or against the validity of the contract or its parts. Undoubtedly, only a contract lawyer with adequate knowledge and the required skill can give your company a chance of settling it without compromising your interests.

7.      To Negotiate in a More Forceful Way

When you are still negotiating the conditions of the contract with the other parties, having a knowledgeable advocate by your side can give you an edge. Your contract lawyer can argue on your behalf and better convince the others to come round to your perspective. Moreover, he or she can safeguard your interests and get you a more equitable contract.

8.      To Save Money in the Long Run

Hiring a contract lawyer can seem like a big expense, but, in fact, it is more of an immediate investment than an expenditure. Fighting lawsuits and navigating through contractual conflicts can have a huge toll on both your reputation and your bank credit.

As compared to that, hiring an attorney is no big issue. Furthermore, strong and long-lasting business relationships are priceless and your counsel will help you build those through solid contracts. So, instead of cutting costs here, you should just think about all the benefits you could eventually reap.

If you want a foolproof and lasting contract that is custom-designed to meet your needs, experienced contract lawyers, such as the ones at Trademark Counsels, can make it for you. Each of them is a seasoned professional who will devote themselves to giving you the best legal advice. What are you waiting for? Look no further, and get a consultation!