Using Standard Form Contracts May Hurt Your Business
When putting together a contract for the first time, many business owners may turn to standard form contracts to make agreements between customers, vendors, and other businesses, writes Corey F. Schechter of Butterfield Schechter LLP.
“Calling these contracts ‘standard’ may make it seem like they will protect your interests and provide for any contingencies that arise,” he explains. “However, many businesses find that a standard form contract ends up hurting their business.”
Because a form contract is designed to cover all bases, it may avoid language that is specific to a particular type of business, according to the article.
“Not only do these vague business contracts fail to address important issues that may arise between the two parties, they may also lead to confusion over what terms will actually govern the agreement,” Schechter writes.
