Business Law

Do you know?

Do you know what will happen legally and financially to your business if a company you work for withholds compensation after you have already performed the work, and after you have already spent valuable time, money, and labor on a project? Do you know what will happen if someone you hired does not perform as promised?

If you sign a contract that you didn’t fully read or fully understand,

• you may end up contractually agreeing to be responsible for someone else’s negligence, even if you yourself didn’t do anything wrong,

• you may end up signing a contract with illegal contract terms that are invalid or unenforceable as a matter of law, but if no one ever tells you the contract terms are illegal, you might end up in an unfair situation where you follow through on XYZ just because it is written down in black and white in the contract,

• you may end up disappointed when you learn too late that the contract doesn’t match your handshake agreement,

• you could get stuck in a long-term contract that doesn’t deliver the services you thought it would, or

• you could end up with a contract has no “teeth” or that is too difficult to enforce because the remedy provisions are too expensive and too time-consuming to follow through.

Bottom Line: Business contracts are (usually) legally binding. It is crucial that you review a business contract in full before signing it. Once the contract has been signed, you are (usually) legally bound to the terms and conditions within it. If you do not know what a term means or if the contract does not match your handshake agreement, PAUSE. The first step is to find out exactly what would happen legally and financially if the other side does not keep their promises so you can plan appropriately. Click here for a FREE CONTRACT REVIEW CHECKLIST.

Need more help? Call Spector Law for a free 15 minute call today to get started.

Spector Law can help you make informed contract decisions so that you can enter a contract with “eyes-wide-open,” fully aware of what’s in a contract BEFORE you sign. And that awareness could save you significant time, money, and effort so that you can make sure that the written document matches the handshake agreement. Additionally, when you are fully informed of what a contract says, you increase your negotiating leverage and you can maximize what results you will get out a business deal. When the outcome is important, Spector Law can make sure that the contract contains the appropriate language to achieve your goals.

Although some DIY contract platforms can be convenient, there are some downsides and limitations to using a one-size-fits all solution:

1. Limited Legal Advice: DIY platforms provide document templates and form completion services, but they are not a law firm. They cannot provide personalized legal advice tailored to your specific situation. And sometimes what you don’t know can hurt you. For example, having a simple contract that fails to include industry-specific contract language could mean that your contract is silent on an important point, and that silence could end up benefitting the other party to the contract, not you.

2. Complex Legal Matters: DIY platforms may be suitable for simple legal matters, but they do not do a very good job at protecting your interests when the stakes are high. Do you really need an attorney to review a contract? Maybe, maybe not. A good rule of thumb is to think about how inconvenient it would be if the other side fails to perform as promised. Did the car guy fail to show up and install a new windshield on your car even though you prepaid him months ago? An inconvenience, sure, but at most you’re out a couple hundred bucks. But what if you paid someone thousands of dollars for marketing services and they talked a big game but the work they actually did is a lot different than you thought they were going to do? Time is money, and broken promises could cost you lost business opportunities and lost time and effort in growing your business.

3. Errors and Omissions: While DIY platforms aim to provide accurate and reliable services, mistakes can still occur. Filling out legal documents incorrectly could lead to legal complications and additional expenses down the road.

4. Costs: While DIY platforms may be more affordable than hiring an attorney for certain tasks, the hidden costs can add up, especially if you take into account how much money you are leaving on the table by omitting important contract provisions that ensure you have a comprehensive and enforceable contract.

5. Lack of Personalized Attention: DIY platforms operate on a self-service model, so you won't have the benefit of direct, one-on-one interaction with an attorney who can address your unique concerns and questions.

6. State-Specific Laws: DIY platforms provide services nationwide, but laws can vary significantly from one state to another. The platform might not always consider state-specific nuances and requirements, potentially leading to documents that don't fully comply with local regulations.

7. Privacy and Security Concerns: When using online platforms, there may be concerns about the security of your personal information and sensitive legal details. Make sure to review the privacy policy and security measures on any DIY platform before proceeding.

8. DIY Risks: When using services like LegalZoom, you are essentially engaging in a do-it-yourself legal process. This can be risky, as legal matters can be complex, and overlooking important details may have serious consequences.

9. No Representation in Court: DIY platforms cannot represent you in court or provide ongoing legal representation. If your legal matter requires litigation or complex negotiations, you will likely need to hire an attorney.

Ultimately, while DIY platforms can be a convenient and cost-effective option for certain legal tasks, it is essential to recognize its limitations and carefully assess whether your specific legal matter is suitable for self-service or requires the expertise of a qualified attorney.