3 Reasons to Avoid Template Contracts

Using a ready-made contract template may be tempting. They can be an inexpensive, and sometimes free, option for many small business needs. However, these generic contracts could leave your business vulnerable by causing lengthy contract disputes or leaving you financially liable. What’s wrong with “form” contracts?

They Include Things You Don’t Need

Because these generic contract templates are designed to fit a wide range of companies and industries, there are usually at least a few parts that aren’t necessary for your purposes. If you don’t remove these sections, they can make your contracts unnecessarily complicated. Including things in a contract that don’t apply could cause confusion during negotiations or even make the other party walk away altogether.

They Don’t Include Things You DO Need

Not every small business faces the same liabilities and by using the terms and conditions defined in most generic contracts, you could be leaving your business at risk. Most ready-made contract templates won’t include every element your company requires and the ones that are included won’t be specific enough to offer adequate protection.

T

hey Use Vague Language

Contract templates often use vague language when laying out the obligations and benefits for all parties involved. Because contract law is complex, a business contract should always be as specific as possible. There are times when vague language is unavoidable or even helpful, but most vague language can cause disputes, such as claims of a breach of contract. For example, the phrase “without undue delay” is unclear and either party can determine what constitutes an undue delay.

Choosing a generic template for your small business contracts may be a quick and easy solution now, but it can lead to legal headaches later. For professional review, drafting or litigation of your business contracts in Georgia, call the office of M. Qader A. Baig & Associates, LLC today at (770) 929-1665.