If you plan to do business with another person or company, then it is critical to have your expectations and requirements put to paper in a properly formed contract. A properly formed contract clearly states who the parties are along with their responsibilities and intentions. One will also include all of the smaller details of how their business relationship should be conducted. Contracts can be necessary for single transactions or can set the stage for an ongoing business relationship. Contracts can be needed for the following reasons:

• Real estate purchasing contracts
• Real estate leasing contracts
• Partnership agreements
• Sales contracts
• Service contracts
• Option contracts
• Employment agreements
• Licensing agreements
• Franchising agreements

This is not a complete list of reasons why someone might need a contract. If there is a dispute, then the court will look to the signed contract to determine what the appropriate outcome should be. If you leave an important detail out of your contract, then you face a steep hill to climb before the judge will even consider it. Courts expect that contracts include all of the relevant details about a business agreement, and don’t typically allow evidence of other verbal or written agreements unless the contract refers to them or a legal exception exists. Make sure that your business contracts are fully formed and complete, because the smallest error can prove costly.

When businesses have disagreements with other parties, or when communication breaks down, they may find themselves in litigation. It is important for businesses to have trust and good communication with other parties in order to conduct business smoothly. Once trust and/or communication have deteriorated between people doing business, then it is common for business litigation to follow. Business litigation involves cases such as:

• Contract disputes
• Uniform Commercial Code (UCC) disputes
• Business transaction disputes
• Insurance litigation
• Breach of fiduciary duty
• Trade secrets disputes
• Business torts such as fraud
• Real estate disputes

These are not all of the types of cases that businesses can face. When a person or business is alleged to have been involved in committing wrongful business practices, that person or business can be held liable for various money damages including:

• Compensatory damages
• Restitution damages
• Compensatory damages
• Liquidated damages

If a court finds that the defendant's conduct was deliberate and meant to harm the plaintiff, the plaintiff can recover punitive damages. Punitive damages are a type of damage that is not meant to pay for any costs the injured party has incurred but is meant to punish the bad actor and deter future similar conduct. These damages are uncommon, but they offer the biggest sums for recovery.

Finding a website like ours can be helpful for general research, but the information found here should never be a substitute for professional and experienced legal advice. If you are planning to conduct business with someone else, then it is a good idea to speak to an attorney before you do so. If you have a business issue and think you might need an attorney, then first document as much information and details about the transaction(s) and the people involved as possible. Make sure to collect any and all important documents, emails, and any written communication between the parties so you don’t miss any potential claims. Then make sure that you seek the advice of an experienced attorney to answer your legal questions. If you have legal questions, then call us so we can help!