Common Types of Clauses in Business Contracts
The biggest mistake you will make when running a business is entering a transaction without a legally enforceable agreement. Regardless of your relationship with your client or partners, a contract is paramount. There are some clauses in contracts that have certain limitations.
Getting a business attorney in Denver to help you understand these clauses is essential. This way, you ensure you protect your best interests.
Here are some of the standard clauses found in business contracts.
Integration and Merger Clause
This clause prevents parties from later claiming that the agreement does not accurately reflect their complete understanding. When entering a contract that includes an integration and merger clause, you should ensure all your terms and promises are explicitly included.
If not, it might be impossible to sue for breach of any commitment in future.
Choice of Forum and Law Clause
This clause indicates the particular state’s law or jurisdiction that will be used to interpret the contract. In most cases, this is the law of the land where your business is.
In partnerships that include companies in different localities, your lawyers will reach an agreement on the best state law, court system and jurisdiction to use in case disputes arise.
This clause ensures your contract remains legally enforceable even though a part of it is later held void. Lack of this clause negates your entire contract if a court finds part of it unenforceable. A savings clause protects clients against undelivered work should a dispute arise in some aspects of the agreement.
Though the above clauses are the most common, they do not reflect all the clauses you will come across. To protect yourself ensure you fully understand the meaning of different clauses and include others for your good. This will save you on costly future litigation and severed business relationships.