It is almost impossible not to browse the web and not come across hundreds of contract templates for various areas of the business world. Even though many think that using a contract template is the best way to draft a contract, it can lead to serious legal problems. Thousands of parties enter into contracts that have been drafted using a template in lieu of a contract that has been drafted by an attorney. Below, you will find the dangers of using a contract template instead of an attorney drafted contract and how it can impact your agreement with another person or company.
1) Using the Wrong Contract Template
One of the biggest dangers of using a contract template instead of a contract written by an attorney is that you might use the wrong form. There are thousands upon thousands of templates available for use online. How do you know which one is correct for your situation? You simply do not know. It is possible that you could be signing a form that is for a joint venture when you would rather sign a form that establishes a partnership agreement between you and the other party. Once the documents are filed, you will need to go through a lengthy and expensive legal process to fix the problem.
2) Omitting Important Language
Language is key in any type of contract you draft, which is why you need to avoid templates at all costs. You have no idea who wrote the template you are using, which can lead to the omission of important language that can either make or break your agreement. When you work with an attorney to draft a contract, he or she will know the appropriate language to use in your contract based on the situation being discussed.
3) Not Having an Understanding of Your Rights
It is vital in any legal situation, especially when writing or signing a contract, that you have an understanding of your rights. When you use a contract template, you likely will not have a solid understanding of how your rights should be protected in the contract. An attorney knows the situation you are in and how your rights come into play, ensuring that all of your applicable rights are protected in the contract.
4) Failing to Tailor the Contract Template to Your Situation
Using a contract template does not make it easy to tailor the contract to your specific situation. For example, a contract template will not have language in it to address the terms of the deal you and the other party have discussed at length in meetings or via email. Instead, the wording will simply be generic and could cost you a lot of money and time if the other party decides to take advantage of this situation.
5) Failing to Know the Differences in State Laws
When you utilize a contract template, you fail to know or look for the differences in state laws. It is vital to the health of the contract that you have an attorney draft a contract for you since they know how state laws differ, especially when it comes to registering or creating a business.
In Need of a Contract? Contact an Experienced Contracts Attorney Today!
Do you need to draft a contract for your business? It is best done with the help of an experienced contracts attorney. Call or text the office of The Benkabbou Law Firm, PLLC at 813-586-3351 to schedule a consultation today.