Commercial transactions are the center of business. Businesses enter contracts and assume liability on a daily basis. No one can predict the future, but understanding and minimizing your risk is important.
As a business owner, an inventory of the agreements/transactions you enter into on a reoccurring basis demonstrate the substantial risk and commitments you assume.
While the law grants parties control over the terms of their contracts/agreements, contracts are controlled by common law principles and the Uniform Commercial Code (the “UCC”). Common law governs transactions for real property (sale or lease), services, and intangibles, while the UCC governs the sale of goods. A good is anything movable at the time of identification of contract. Both the common law and the UCC can be complicated and subject to various interpretations.
The proper drafting of legal agreements can minimize risk. Whether or not your business uses boilerplate contracts, reviewing the terms regularly can help avoid disputes.
If you find yourself experiencing repeated difficulties with a contract and its enforcement, or you would like to assess your risks, contact us. We can review, revise, or create contracts according to your needs.
Stay tuned for next month’s posting on a special relationship!