Launching and successfully operating a business in the Chicago metro area without clearly drafted contracts presents significant challenges.
Business agreements should outline expectations, rights, and duties. Without clear contracts, a company may flounder. Indeed, an entrepreneurial vision might not even gain traction and enter a formation stage.
That business reality is prominently noted in a discussion of the centrality of contracts in the commercial realm. That topic overview stresses that legal agreements “serve as the foundation of decisions for operations and growth.”
And they span a vast universe of concerns.
The Broad and Comprehensive Reach of Business Contracts
Without regard to the type of business organization, a company’s principals routinely focus on contractual matters. That is equally true for a sole proprietor, a principal in a partnership, or a member/manager of a limited liability company as it is for key decision-makers of a sizable corporation.
Moreover, the scope of their continued scrutiny and input is notably broad. Contractual issues run a wide gamut of possibilities, with the focus often being on matters like the following:
- Formation (entity choice)
- Purchase/sale matters
- Payment terms
- Contract performance
- Permitting, licensing, and regulatory compliance
- Risk avoidance, indemnity, and linked matters
- Business transition and exit strategies
- Employer/employee interactions and expectations
The last bullet point understandably involves a top-tier concern for most employers. Employment contracts – well-drafted, protective, and enforceable – have critical importance in the business world. Business managers often seek to safeguard a business’ interests by requiring that select workers sign contracts, such as nondisclosure and noncompete agreements.
Contract Breach: When Things Go Wrong in the Business World
Commercial principals compete in a challenging and exacting realm where each party expects performance from the other. When one side’s conduct falls short, the other may suffer greatly, and its future may be in peril.
Notably, conflict can often be avoided altogether by an initial and proactive pre-breach approach centrally defined by careful contract negotiation, drafting, review, and revision. A contract that specifies each party’s obligations and requirements can help avoid a later dispute, including litigation, which can be disruptive and expensive.
As noted by one primer on business performance breaches and resulting remedies, in a commercial environment, “delays happen, financial problems can crop up, and other unexpected events can occur to hinder or even prevent a written contract from being carried out.”
Parties suffering from contractual breach understandably must sometimes take swift action to seek to resolve a dispute. If negotiations fail, aggressive action may be warranted to safeguard the business against further damage.
When consensual resolution efforts fall short, experienced legal counsel can undertake a timely and proven legal response to third-party nonperformance. A seasoned team of commercial lawyers with a demonstrated record of advocacy in contractual disputes can safeguard a client’s best interests and work diligently to promote optimal case results.