NEGOTIATING AND DRAFTING AGREEMENTS AND CONTRACTS

Starting up a business requires a major investment of time on the part of the entrepreneur. He or she is quickly called upon to make a number of decisions and coordinate the various tasks involved in order to ensure, as far as possible, a smooth start-up and healthy growth of the business. It is in the best interests of both the entrepreneur and the business to have a clear understanding of the decisions made and the legal consequences. What’s more, although the law allows most contracts to be concluded verbally, this practice is not recommended. In the event of a dispute, it will be much more difficult to prove the true agreement between the parties. The negotiation and drafting of contracts must not be underestimated by the contractor. Gaps or omissions in the drafting of contracts are, in many cases, the main source of conflict between the parties. It is therefore essential that contracts entered into by the company accurately represent the parties’ agreement. Comprehensive contracts that include all the elements that have been negotiated minimize the risks that can arise from their interpretation. The terms used are particularly important. They should not lead to confusion. A well-drafted contract clearly sets out the company’s rights and obligations, while mitigating the risks to which it is exposed. Every type of contract is different, and should contain all the essential clauses related to its purpose. A lease, an employment contract or a sales agreement all have their own particularities. So, when drafting these agreements and contracts, you need to make sure that all the necessary clauses are included, and that they comply with all the criteria laid down by law. Signing the first contracts is a crucial stage in the development of any company. As such, the effort involved in negotiating and drafting contracts is an investment that should not be overlooked.

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