Understanding Contract Litigation: 5 Tips for Creating a Tight and Enforceable Contract
Contract litigation is something that takes place within the court system. It is the act of resolving a dispute about a contract after the parties to the agreement find themselves at odds. Though a skilled attorney will be able to represent you in negotiating disagreements, or taking the issue before a judge and jury if need be, at the Philadelphia law firm of Bochetto & Lentz we believe that it is far more effective to head off complications proactively by creating a tight and enforceable contract that is in the best interests of our clients. By creating agreements that anticipate the various challenges that may lay ahead, we are able to minimize both legal costs and the aggravation that comes from loss of time, loss of progress, and loss of goodwill. At Bochetto & Lentz we understand that an important part of contract litigation lies in avoiding it through careful preparation of effective contracts. Call us today to learn more about our contract services.
There are five elements that must be included in every contract in order to reduce the risk of both breach of contract and the need for contract litigation. These five elements are:
- Defining the parties to the contract: Though this may seem obvious, there are many issues that can make this more challenging then would initially be assumed. It must be established that a signor to a contract is an authorized agent. The guarantor of the contract’s terms must also be established. Having a contract that specifically identifies who would be the appropriate party to name as a defendant in case of a breach is essential.
- Defining a breach of contract: A contract must specifically identify what the duties of contract fulfillment are, what the material duties are, and what the conditions are so that a failure to meet the conditions can be established.
- Defining the remedies for a breach: Whether you are seeking specific performance of the terms of the contract, financial damages for failure to perform, or a complete cancellation and restitution, by including the remedies within a contract you are able to avoid costly contract litigation.
- Identify all of the terms and documents of the agreement: Failure to spell out what is included in a contract, or what additional modifications or exhibits are integrated into the contract, leaves too many questions unanswered. Take the time to include all of the details.
- Establish what the rules will be for enforcing the contract: This means that the contract should include terms about what happens if a dispute takes place, including whether arbitration will be required and where any legal challenge will be heard.
Though establishing a contract between two initially agreeable parties may seem like a formality, once a dispute arises goodwill is generally gone. It is essential that these elements are included in every contract for it to be enforceable and to avoid contract litigation. For experienced legal assistance in drafting effective, airtight contracts, contact the law firm of Bochetto & Lentz today.
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