Contracts are crucial in business. And for a place where small businesses thrive, such as Alberta, the need for small business contract lawyers cannot be stressed more.
The Canadian province has more than 160,000 businesses with less than 100 employees. And these small businesses are an integral part of Alberta’s economy as much as they are a crucial part of every business owner’s satisfaction and financial freedom.
Unfortunately, many businesses often encounter legal problems with contracts. Because as frequently emphasized as they are, business owners are still hesitant to hire small business contract lawyers and only do so when faced with legal battles.
And what are the most common contract problems encountered in Alberta?
One of the most common and the first significant contract problem that businesses can encounter is the issue of pricing. Procurement contracts can have problems with pricing, which can either be unmanaged or mismanaged procurement spending.
The former refers to a situation where businesses have no contracts or minimal control over production-related or general purchases. On the other hand, mismanaged procurement spending is when companies have an agreement that states when and where to buy supplies. However, they don’t follow the contract or completely ignore it since the contract may be incompatible with their business.
Such pricing problems lead to more complications for the company, such as increased expenditure and conflicts with suppliers.
Issues with Compliance with Industry Regulations
It is vital for companies to comply with industry regulations as much as deliver quality services and earn maximum profits. And to comply with regulations, contracts need to be specific to business operations.
Unfortunately, some contracts have vague statements about the security of intellectual property and digital assets, referrals or services andproducts, and buyer standards, which can be considered non-compliance with specific rules.
These issues with contracts will spell trouble for business owners.
Lack of Clarity Regarding the Role of Suppliers
As a business owner, you need to have detailed expectations from your supplier stated in the contract. These expectations include confidentiality, additional insurance, and material losses.
However, many contracts fail to clearly state these roles and expectations, leading to conflicts with suppliers and more trouble for your business.
Problems with the Terms and Conditions of the Contract
A significant inclusion in contacts is the terms and conditions for both parties. These conditions need to be clear, especially regarding the responsibilities of those involved and the payment terms, to avoid problems in the course of operations.
The contract should also discuss price protection so businesses can stay safe during price hikes and a precise delivery schedule for supplies. Lastly, it should be transparent about the contract’s validity because problems can occur way before operations start or after the negotiations are done.
Sadly, many businesses go through disputes with suppliers and business partners because their contracts aren’t clear enough.
Legal battles concerning contracts are some of the most stressful problems business owners can face. Hence, they must steer clear of it before business operations start.
Small business contract lawyers can help businesses avoid contract problems. They are qualified to create, evaluate, and reassess contracts before and throughout their validity. With their help and guidance, business owners can fully understand what’s stated in contracts and follow through, so everything goes according to plan.