Effective implementation of your business plan or strategy depends on the effectiveness of your documentation of business contracts. Businesses often require assistance in drafting contracts for specific relationships or transactions. Unless the “deal” as planned is correctly stated in an enforceable legal contract, there may be no way to enforce performance in the event of a breach by the other party. On the other hand, a correctly drawn contract is a deterrent to breach of agreements by other parties and helps avoid misunderstandings that can lead to costly litigation.
Legal assistance in drafting contracts for specific relationships or transactions is therefore a wise investment. Examples include confidentiality agreements in connection with possible business sales, agreements for marketing or sales personnel acting as agents or independent contractors, consulting agreements and covenants not to compete. An excerpt from Mr. Hemphill’s seminar presentation on business contracts in the state of Texas provides insight into matters which must be considered in negotiating and drafting effective contracts.