Be careful when signing contracts

On Behalf of | Jul 21, 2020 | Commercial Litigation

When Texas residents and business owners enter into contracts, they need to read the contracts themselves and not just leave it up to their lawyer. While the attorney may catch some forbidden contractual terms, everyone needs to be on the lookout for provisions that may not be enforceable. This will save a person much greater headache in the future.

The problem that many encounter is when the contract gets litigated in the future. The court will generally hold that the terms of the written contract control. If the contractual language has a clear meaning, the court will not care what the parties’ intentions were when they signed the contract.

However, the use of imprecise language that may be muddled or vague can also present problems of its own. Then, the court may end up having to interpret the contract on its own. This could lead to an unpredictable outcome for both parties. Sloppy drafting can cause expensive legal hassles in the future.

Moreover, one should watch out for contractual terms that violate law and will be unenforceable. For example, a contract must be a definite agreement in the present. Two parties cannot agree that they will agree in the future. The document must reflect all of the present agreements between the two parties. They cannot specify that they will resolve the missing terms in the future and have it bind them.

Even though one should always read and pay close attention to their agreements, they will need the help of a contracts lawyer and commercial litigation attorney when they are negotiating agreements. The litigation attorney may end up needing to help their client in court when they are locked in a dispute with the other party after they agreed to a contract that was vague and lacking specificity.