5 Keys to an Enforceable Business Agreement

An enforceable contract agreement protects you and the person/company that you are entering an agreement with. It lays out the specifics of the agreement and adjustments to the agreement being aware of them before signing. A business agreement can involve business, personal, employment, services given, services paid for, or various other instances an agreement can be written for. This blog will lay out the 5 keys to an enforceable business agreement to protect you and/or your entity. 

1. Have the contract in writing - no matter what

The digital world that we live in today makes it very simple to sign an agreement. Written evidence can make a difference in the courtroom. Having a written contract is proof of what was discussed, laid out, and the expectations of the parties as it relates to their responsibilities within the contract.  If there are any adjustments to the contract, make sure that it is written as an amendment to the contract signed by both parties to show that the changes have been agreed upon. This protects the parties that are entering into the contract.

2. Clearly identify the parties by their correct name and relationship

When entering into a contract make sure that you have each party’s (person or entity’s) legal name. Make sure to cover any DBAs (doing business as), or if entering into a contract with an Influencer, make sure to have the Influencer’s legal name and/or such Influencer’s tagname. Also, make sure to include the party’s valid contact information for notice purposes. 

3. No detail or condition is too small to leave out 

It is generally better to have too much information about contract terms than too little. Important information to keep in the contract can include, payment arrangements, non-compete clauses, confidentiality, dispute resolution, and in some cases, indemnification clauses. *Quick note: an indemnification clause is a clause to compensate the other party (the indemnified party) for certain costs and expenses.* Make sure that the contract includes everything that you want and have agreed upon. 

4. Agree ahead of time on circumstances that might lead to the termination of the agreement 

It is prudent to include a termination section within the contract. A termination clause lays out how the agreement can be terminated, when it can be terminated and who is responsible for legal fees upon termination (if legal fees apply). This section may also include how issues are to be resolved (how risks can be allocated and/or mitigated). Be sure that you are fully aware of this section in your agreement. 

5. Keep it simple and confidential 

A simple contract is easy to understand and there is no ambiguity in the terms of the agreement or the expectations of the parties involved.  Make sure to contact an attorney to help you maximize your benefits within a contract and reduce your risks and exposure within a contract. 

Here at Okunade LLP we can assist you drafting, reviewing and/or litigation of your contracts.

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**Disclaimer- the content on this post is for informational purposes only**

But if you have questions or concerns we would love to connect with you and see how we can assist you in your legal needs.