Why do I need a contract?

Contracts are the foundation of business and corporate law.

The terms of a written contract should be carefully considered. You should have the opportunity to review them and expose any potential misunderstandings or disagreements before you get too far into the business relationship. If your contract contains the proper language to protect your rights and the “fine print” is tailored to benefit your business, you can often avoid business disputes, litigation and appeals.

When you are putting together a business deal or entering into a business transaction, protect yourself by putting the terms of your agreement in a writing that clearly and expressly states exactly what you intend to do, the obligations of all parties, any terms of compensation, and what happens in the event of a dispute.

Griffith & Jacobson, LLC, is a Chicago business and corporate law firm with over 60 years of experience handling commercial contracts and the depth of knowledge to provide you with cost-effective legal solutions. For a list of some of the businesses and industries our law firm has served click the following link: Businesses & Industries Served. 

For a free case evaluation by one of our business lawyers, click the following link: Contact G&J or call us at (312) 236-8110.

Contracts that must be in writing

Without a written contract, the parties are left with an oral agreement that can be difficult and expensive to enforce. A dispute regarding the terms of an oral contract ends often results in a judge trying to decide whose testimony is more believable. To be enforceable, certain types of agreements must be in writing. The Illinois Statute of Frauds requires a written contract for agreements dealing with:

• The sale of goods valued over $500.
• Contracts or agreements that are not capable of being performed within one year according to the terms of the contract or agreement.
• Real estate agreements (such as commercial leases, purchase and sale contracts, easement rights, etc.).
• Marriage (such as pre-marital or post-martial agreement).

Contracts are not “Do-It-Yourself” projects.

Contracts should reflect the “meeting of the minds” between you and the other party, so a good contract should be customized to If you download (or purchase) a form, agreement or contract from the Internet, make sure you have it reviewed by an attorney to ensure it protects you and contains the necessary terms and clauses to address your concerns and provide instructions on how to handle issues that arise during your business dealings.

To help assist you, the lawyers of the Chicago business law firm have a few clauses to consider having in your contract:

• Make sure you have established terms for payment and enforcement or you may never get paid.
• Courts will not force a party to pay your attorneys’ fees or court costs unless you have a clause in a written agreement. Otherwise, you will need to fund your own litigation.
• With a written agreement you can include an enforceable provision for stoppages and/or termination (a “stop work” clause if you provide services or ship products on an ongoing basis) and penalties for lateness such as charging interest and/or late fees if they don’t pay on time.

Read more about why Griffith & Jacobson, LLC is the right choice for all of your business and commercial law needs. 

Contact Griffith & Jacobson, LLC -  Contact Us or call us at (312) 236-8110 for a free case evaluation.