Contract Matters
Contract Matters
From time to time, everyone becomes a party to an agreement or a contract. Agreements may involve employment, buying or selling a car, house or other personal property, renting an apartment, or engaging a contractor for home repairs. Agreements sometimes lead to disputes. Contracts may be either oral or in writing. Both can be legally binding. However, when a dispute arises, proving not only the specific terms but even the existence of an agreement may be difficult. For this reason, agreements should be in writing in the form of a written contract.
It is not at all unusual for a client to walk into an attorney’s office wanting to get out of a contract because he or she either didn’t read the agreement or understand its terms before signing it. Another claim is that one felt pressured into signing an agreement. These are not valid legal defenses. Not knowing the provisions of what you’ve signed is not a legal basis to get out of an agreement that in hindsight is undesirable or inequitable. Before signing any contract, one should always read the contract in its entirety.
If you do not understand all of the contractual terms, you need to seek the advice of an attorney who can explain it to you BEFORE YOU SIGN IT. A contract should also always contain all terms of your agreement. Don’t count on the other party’s verbal assurances. If you want to be able to rely on an assurance, it must be in writing and included within the document. An attorney can also serve as the “devil’s advocate” to assure that a written agreement thoroughly covers all of the worst case scenarios. Often, when signing a contract, the party does not consider what happens if things go wrong or the relationship sours.
Examples of “What ifs” to Consider:
What if the house burns down after signing the real estate contract and before the closing occurs? What happens if the business parties no longer want to work together or if one wants to sell his or her interest? What happens if the tenant is relocated out of state in his/her job and needs to get out of the lease? What happens if the contractor fails to complete the home improvements that were agreed to in a workmanlike manner? These types of “what if” issues should be discussed in advance of putting one’s name on any legal agreement.
Don’t naively rely on the other party being “fair”. In the real world it won’t generally happen! It is only natural for a party to try to get the best deal he or she can. Also, don’t rely or believe it if the other party or their representative tells you that you don’t need an attorney to represent you. Without a lawyer at your side, only you are looking out for your best interest.
Whether preparing a written contract for you in order to memorialize in writing your agreement or reviewing one on your behalf, if not 100% confident in what you are signing, you should ALWAYS consult with an attorney before signing it. The time and usually minimal expense involved on the front-end will seem to be a tremendous bargain if, in the future, disputes arise or if you later regret what you have gotten yourself into. It is much easier to resolve contract disagreements or eliminate potential misunderstandings beforehand than after you have legally bound yourself to its terms.
Most of the business, corporate and contract matters at Holzfaster, Cecil, McKnight & Mues are handled by Attorney Joseph E. Balmer who has an MBA degree from The Ohio State University in addition to his law degree. Click here to read his biography page. Please don’t hesitate to call us at (937) 293-2141 or email us by using our form below if you want to discuss a contract or any business related issues. Additionally, we have an emergency phone number, (937) 760-4357, that is answered by one of our lawyers around-the-clock.
