Many experienced business owners have been through contract negotiations and think they can save a few dollars by not hiring an attorney. While this may work out for them, they could be taking an unnecessary risk since they may be missing the many benefits of having a business lawyer present to help with negotiations. If there are problems with the contract, they could soon find themselves spending more money on litigation that could have been avoided had they spent a little more upfront on legal assistance. This is what famous Pennsylvanian Ben Franklin once called being “penny wise and pound foolish.” So, if you are involved in signing an agreement, even if you think it is small or insignificant, it pays to hire an experienced Pennsylvania business lawyer to assist you. Here are some benefits you and your business will get by adding a second set of legally trained eyes to your negotiating team.
Legal Expertise During Contract Review
Legal agreements and documents have terms and language that can be complicated. Even a seemingly simple agreement may contain a clause that has very specific legal effects. Unless you have the training and experience of a business attorney, you may miss the nuances of the language used in the contract. This can cause a problem if the confusing language deals with things like the conditions of performance and enforceability. If the key terms of a contract are not clear, it could make it difficult to enforce the agreement if the other party does not fulfill its obligations. Enforcement in the event of a breach is a critical condition. This is why it helps to have a business attorney on your team who can review the document and explain all of your rights and obligations.
Due Diligence Review
Many times, you may be contracting with another party for the first time or over a specific good or service of which you have limited knowledge. This is where due diligence review comes into play. You want to make sure the other party is credible and has the capability to fulfill their end of the agreement. It is also crucial to make sure that you are getting the things you expect out of the agreement. Having an attorney involved in due diligence is the best way to make sure everything is as it seems.
Negotiation Advantages
If you are like many people entering into an agreement, you may feel an emotional stake in the outcome of the deal. This could either blind you to problems with the agreement, or provide an advantage to the other side if they sense that you will agree to anything just to get the deal done. Having an attorney present to negotiate on your behalf will give you someone with an objective view of the deal. It will also allow you to preserve your relationship with the other party, since the lawyer will be the one asking the difficult questions and taking the tough position on your behalf.
Risk Mitigation
An experienced business lawyer is skilled at identifying potential problems in a deal and a contract. This is both because he or she has knowledge of the law and may have seen other deals with similar conditions lead to lawsuits. Your attorney can help you mitigate risk by advising a different course of action, or by adding terms to the contract that provide better protection for you and your business.
Cost-Benefit Analysis
There are costs with hiring a business lawyer to represent you, including having him or her present at the contract signing. This will involve paying the attorney for the time involved in reviewing the contract, explaining its terms, performing due diligence, negotiating with the other side, and attending the closing. While these could drive up the cost of your deal, they could prove to save you money in the long run.
If you don’t hire an attorney and you miss something, it could cause problems for you down the road. Not every deal works out, and if you do not have the right protection in the contract, it could make it difficult for you to enforce the terms if you end up in litigation. Also, having a lawyer present could help you avoid a costly lawsuit, since the problems may have been dealt with before you signed the contract. So, hiring a business lawyer to help with the contract process will be a good use of funds under a cost-benefit analysis.
Contact a Pennsylvania Business Lawyer Today
Entering into a contract binds you to a deal with another party. The terms, conditions, and covenants contained in the contract will be vitally important in this relationship. This is why you should not leave things to chance, and should retain an experienced business lawyer to assist you. The business lawyers at Jones Gregg Creehan & Gerace will help you throughout the contract process, making sure to protect your rights and interests so you get what you bargained for in your next agreement. Contact us today for a consultation.