Why a DIY contract will fail you when you need it most
When Dr. Frankenstein tried to DIY a human, we can all agree that didn’t work out too well. Why? Because you can’t slap a few pieces of something together and expect perfection. The same can be applied to that DIY contract you’ve been using. It might appear to be working out well until the time comes you need it to enforce something, then BAM, disaster strikes.
OK, enough drama, but seriously, a lawyer has to study for 3+ years, pass the bar exam and article for 10 months before they can even practice law and create a contract for you… please stop thinking you are qualified enough to DIY yours. Keeping this in mind, we want to walk you through a few of the main reasons why your DIY contract will fail you when you need it most.
Too Vague or Too Confusing = Invalid!
We all know that Lawyers are trained to know exactly what to put in a contract, but it’s also about knowing what NOT to include. It’s important to understand the intricacies of each clause and be aware that through improper use, one clause may even cancel out another in the same contract. What a pain in the peach right? Contracts that are piece-mealed together, are often taken from many different agreements, covering a multitude of scenarios, which is when errors in definitions and terms specific to the transaction, become misused, misunderstood or just don’t make sense. A contract can be proven void if it is too vague and the ramifications of such a determination can cost you big time.
Are you missing out on income?
Without having a curated contract, you could be missing out on: receiving reimbursement for work-related expenses, lost revenue in the event of a cancellation or retaining ownership of your intellectual property. If you haven’t sufficiently stated that your services or materials are not for resale, who is to stop your client from sharing your hard work with others and making a profit off your back. If a client cancels their agreement, how sure are you that your Termination clause has what it takes to get you paid what you’re owed? A properly structured contract will ensure you get what is legally yours and without a lengthy battle.
Protect your hustle people, you’ve worked too hard to be taken advantage of.
It’s a State of Mind
Now be honest, is the contract you’ve been using an online freebie? If so, it’s quite possible it has circulated the web for the past 20 years, in which case, I’m willing to bet there are a few red flags. One that often pops up is where your State’s/Province’s rules are concerned. If we look at the US for example; There are Federal laws but also State laws which, you guessed it, can differ from State to State. Why does this affect your contract? Because if your contract was built for a specific jurisdiction in which you aren’t conducting business, well, my friend, you might be fresh out of luck when you realize what’s enforceable in one state might not be applicable in yours.
There are ways around spending thousands of dollars on lawyers fees, just to get a contract of two put together. If this article has you second-guessing your legal documents, take a look at Contracts for Entrepreneurs and see how easy it is to cover yourself. Each contract comes with an easy-to-understand User Manual that explains exactly what each clause means and how it will apply to you and your small business.
Don’t wait for your DIY contract to fail you before you replace it. Give yourself peace of mind, and get a contract that will protect your: business, time and money.
Follow @ContractsforEntrepreneurs to hear more about our premium, affordable and steadfast contract templates.
Related Articles
My Client won’t pay me! What can I do? All about Collection Agencies and when to Hire One
If you don’t know what a collection agency is, you’re probably lucky and have never had to deal with a client refusing to pay you for your goods or services. A collection agency is a company that anyone, including lenders, creditors, and business owners, can hire to...
The Business of Law: Human or Commodity?
An Opinion Piece by Elena Favaro VianaWhen I was a new lawyer, I spent the initial few months trying to build out my network. I met a gentleman once, whom at the time, I admired and looked up to, and set up a coffee date with him. I did not have a lot of expectations...
How to get out of a Legal Contract? All about Termination Clauses
When parties enter a contract, the goal is to ensure that both parties understand what they are agreeing to, which is crucial for avoiding misunderstandings and disputes. Some core elements of contracts include responsibilities of each party, deadlines, and payment....