Agreements / Contracts Attorney in Beverly Hills, California

What are the important considerations in reviewing business contracts to avoid disputes?

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When you’re reviewing a business
contract, you want to make sure it
incorporates a complete story so that a
stranger reading the contract will have
the same understanding the parties have.
You want to make sure all the terms of
the deal are recited in the contract in
a way that a complete stranger to the
deal will know what you’re talking
about. The risk clients take is often
they shortcut. They write a deal on the
back of a napkin or a handshake or it’s
something they scribbled out themselves
and nobody looking at it will know what
it means. So if there’s a dispute, they
end up with different understandings.

Los Angeles, CA business attorney Johnathan M. Deer talks about the important considerations in reviewing business contracts to avoid disputes. He emphasizes that when reviewing a business contract, it’s important to ensure it tells a complete story, so that anyone reading it—someone unfamiliar with the deal—will have the same understanding as the parties involved. All terms of the agreement should be clearly recited in the contract, leaving no room for ambiguity. He notes that clients often take risks by cutting corners—writing deals on the back of a napkin, relying on a handshake, or drafting something themselves—because if a dispute arises, the lack of clarity can lead to differing interpretations.

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