In this series, we’re outlining the most common ways businesses and their owners get sued and what can be done to minimize that risk. Our first article focused on employees. In this post, we’ll focus on contracts.
Why Contracts Matter
Because very business needs them! As a general rule, if you have employees, vendors, or customers, you need contracts. Contracts help define the parties’ relationship, right, obligations, and recourse in the event of a dispute. For example, perhaps a vendor has failed to provide adequate services, or an employee has performed poorly and should be dismissed, or your business partner has not lived up to her end of the deal. Contracts can spell out what you can and cannot do, how you must do it, and when you can do it. In other words, without a contract, you’re in the “wild, wild west” without much legal guidance or protection. Not a good place to be when you’ve been damaged and need to protect your interests.
