What is the relationship between a business contract and business litigation? What can you learn from a San Diego business contract and business litigation attorney with more than 40 years of experience?
The Problem With Form Contracts and Download Sites
The structure and elements of any commercial or business contract structure absolutely affects the likelihood of a dispute. Too many disputes and lawsuits in San Diego are the result of forms that have been downloaded from “legal” sites that the user attempts to modify to fit their transaction or relationship.
The genuine challenge for these situations, and why many of them wind up in an expensive and drawn out business litigation, is the complexity of California’s commercial code. Boilerplates – the types of contract you download from a website or copy off of the internet – are simply a starting point, a frame work. These contracts do not fill in many of the details and contingencies required to guide the parties through the transaction or relationship.
There is a direct relationship between a business contract and business litigation. Poorly crafted contracts leave gaps and holes inviting a dispute between the parties. Worse, when a dispute or lawsuit develops, the contract itself is the starting point for the Judge, mediator or arbitrator. When contracts are filled with vague verbiage or important concepts are absent altogether the judge must piece it together in the aftermath. This requires extensive and expensive dispute resolution while attorneys from both sides hash out their client’s point of view, their perception of the understandings that underpinned the agreement, and their interpretations of existing or non-existing content within the contract itself.
Pro-Tip: The party who provided the contract loses the benefit of the doubt in any California contract dispute.
How Can a Business Contract Prevent Disputes and Litigation?
How can a well-crafted business contract prevent disputes and litigation? What is the relationship between a business contract and business litigation?
A well crafted business contract structure affects the likelihood of litigation by removing all doubt. It clearly establishes the role of each party, their responsibilities under the agreement, the benefit of the bargain, all of the contingencies that might arise and how they will be resolved.
We start with a proven, battle-tested contract from our proprietary library of contracts, business forms and due diligence checklists. We do not create contracts from scratch. We tailor an existing, proven contract to the unique application(s) of our clients.
There is a Direct Relationship Between a Business Contract and Business Litigation
There is a direct relationship between a business contract and business litigation. Business contracts custom tailored by the experienced contract attorneys at the Watkins Firm leave little room for interpretation or dispute – reducing the opportunity for questions or disagreement and ensuring a successful outcome in business transactions and relationships.
Start-ups often attempt to minimize costs by using do-it-yourself contracts or downloaded forms. If you are an established San Diego or California business or if you wish to get your company off on a successful path to growth and success you should never attempt to construct your own contracts.
The Watkins Firm brings more than 40+ years of experience serving the business, science and tech, real estate and medical / healthcare communities here in San Diego and across California. We draw upon a proven, proprietary library of business contracts to increase effectiveness and reduce the potential for disputes, lawsuits and ultimately, litigation.
We invite you to review our podcast Episode 15 – Contract Law as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
