From Our Litigation Support Department:
DON'T
SIGN THAT CONTRACT... …at least until you are thoroughly confident you understand all the ramifications that may impact every part of your business! The main reason Berntson Porter has a litigation support department is that problems with an agreement or contract do arise. Conflicts occur when a contract is not clear; when a written contract does not match the verbal understanding of the contract; or when there is no written contract at all. Often, these disputes end up as costly litigation: incurred legal fees and expenses start in $15,000 range and easily exceed $100,000 for complicated or document-intensive litigation. One of the litigation projects in which we have been involved entails two parties agreeing in principle how the contract should bind each party, but the actual document was not drafted nor signed until both parties already started to perform their obligations under the contract. If the contract is not signed before you begin performing some of your duties owed under the contract, you will have little leverage in getting an acceptable contract signed later on. It is important for every individual in a capacity to sign contracts to have an understanding of the ramifications of each contract of the business as a whole. Contracts are legally enforceable promises. It is more cost-efficient to spend the time and expend the necessary resources to gain an understanding of all the promises you make in a contract prior to signing it than to be forced to go to court to resolve any misunderstandings about the "spirit of the contract" before a judge. To reduce your chances of meeting me in an expert witness capacity, spend some time and money before signing a contract. First, thoroughly read the contract and ask questions if you do not understand every word, phrase or section in context. Having legal counsel knowledgeable in and familiar with the intricacies of your particular industry is critical. Building a relationship over time with an attorney allows your counsel to better understand your individual company and help you write and enter into contracts that will be more beneficial to your business. Contracts that are binding over a longer period of time, such as joint venture agreements, should be carefully reviewed and discussed with an attorney, or at least, your accountant. Berntson Porter can assist you in reviewing the contract in relation to how it may affect your business and can explain any accounting requirements, including how this contract will affect your financial statements. Signing a joint venture agreement can have a significant impact on your financial statements and may cause difficulties with your banker's lending requirements depending on how the joint venture is accounted for and how the lending agreement reads. Everything you do and every contract you sign can have far-reaching effects on you and your business. The few thousand dollars you spend now can save you hundreds of thousands down the road. Because Berntson Porter makes it a priority to establish a personal relationship with each of our clients, we possess not only the knowledge, but also the specific experience with your company, to help you protect your enterprise and its assets from such loss. Please contact us for any assistance you require. Some contracts you might sign:
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