Contract law is a legal field that deals with agreements between two or more parties. A contract is an agreement between two or more parties. This agreement usually comes in the form of a legally binding document that is drafted by a contract lawyer and signed by the interested parties upon mutual agreement to be enforceable by a court of law.
This agreement can be signed between strangers, friends, or family members. It can also be between a business and its customers. When a contract lawyer reviews a contract, they look for any potential problems with it.
Several things can go wrong with a contract. The terms of the contract can be unclear or ambiguous, or there can be a problem with the language used in the contract. The contract might violate state laws. In Dallas, for example, a contract that involves an illegal act cannot be enforced in court.
So, in addition to checking out for all these, drafting, reviewing, and executing a contract, a contract lawyer should also do the following.
Draft, review, and execute contracts
Since contracts are documents that detail how a business relationship will work, almost anybody can write up a contract. However, there are a few more technical areas that an individual who did not receive formal training or has gained sufficient expertise in will not know to look out for.
Hence, it is a prudent investment to get a contract lawyer to draft a contract. A contract lawyer can also review a contract written by another person or lawyer and redline the contract where they identify problem areas in the contract and correct them.
Evaluate and determine the contractual capacity of all parties
One of the reasons why agreeing parties sign contracts are to ensure that the contract is enforceable by a court of law. However, a contract can be set aside or voided when the parties that are in the mutual agreement do not have contractual capacity.
The “contractual capacity” is simply a term that defines the basic requirement needed for an agreement to be agreed upon. To that effect, certain groups of individuals do not qualify to sign contracts. Or when they do, the terms of the contract cannot be enforced.
The groups of individuals who lack contractual capacity are minors, intoxicated persons, and persons with mental disabilities. In addition to drafting and reviewing the terms of a contract, a contract lawyer should search for these parties on both sides.
That is, those who are not in a position to enter into a contract due to the aforementioned reasons. This helps protect their clients from possible legal battles, invalidation of contracts, and, consequently, the loss of money and time.
Advise the client
The role of a contract lawyer includes providing legal counsel to their clients. For large corporations that wish to expand, consulting with their contract lawyer can keep them abreast of local or state laws in the areas they wish to pursue expansion.
This involves analyzing and interpreting the law of these regions to the management of the business company. A contract lawyer can also advise the client regarding breach of contract as well as investigate the breaches of contract. This is in addition to preparing necessary documents that will address such breaches.
Negotiate contract terms and benefits
The process before a contract can be concluded usually involves a lot of back and forth. All parties involved in the contract usually aim for terms that are beneficial to them, sometimes at the loss or expense of the other party. Hence, there is often a negotiation process where all parties look for a middle ground.
If business owners and the represented clients were to undertake this process themselves, chances are that they would come out with an offer less than they could be getting or never agree on an offer at all.
Contract lawyers are often the middlemen who step in and negotiate fair terms since they have experience in the field and are emotionally adapted to seek amendments to terms and conditions in ways that serve their client’s interests while being equitable and balanced to the other party.
Be the legal expert during litigious proceedings
Sometimes, contracts are not executed well. There may be a breach of contract. A contract lawyer gives guidance on how to proceed with the lawsuit if the dispute between the parties is not resolved amicably through discussion.
Also, when a client wants to sue the other contracting party for breach of contract, the contract lawyer can serve as the legal professional with knowledge of the contract their client already agreed upon.
Manage records and renewal of contracts
Record keeping is an essential aspect of law and legal processes. It ensures that all case files can be readily accessed whenever needed. Every party involved in a contract should have a copy of the signed contract(s). This includes the contract lawyer who prepared the contract.
Also, some contracts are signed with time limits. After that time has elapsed, the parties in the agreement may want to renew the contract or update certain aspects of it for the business relationship to continue.
It is one of the responsibilities of a contract lawyer to track these contracts, noting when they will expire and seeing that they are renewed before expiration.
Carry out legal research
A contract lawyer will also have to carry out legal research on the laws regulating the business area their client is in. This includes checking that the business proposition and/or contract terms comply with regulations, state laws, and federal laws.
It also behooves the contract lawyer to ensure that the contract terms are valid or enforceable. Carrying out investigations into intellectual property laws to see if their client’s business infringes on any existing product or service is within the limit of what a contract lawyer should do. This saves their client potential litigation.
Bottom line
Contract lawyers are great assets to any business. They ensure you are well protected from the exploitations that plague the business world when you sign a contract that does not serve your interests or business objectives. Contract lawyers also help mitigate any potential risk you may be exposed to in a contractual business relationship.