1400 Gables Ct #103 Plano, TX 75075
5601 Bridge Street, #300, Ft. Worth, TX 76112

Bad Business Contracts versus Good Ones: A Dallas Business Lawyer’s Insights (Part 1)

Dallas business law attorney, Richard “Ric” Armstrong, discusses why bloated, complicated business contracts are an invitation to expensive lawsuits.

Before signing any business agreement, your first litmus test as to whether it’s a good contract is whether you can understand it. The purpose of a contract is to establish an amicable working relationship between you and the other party. Unfortunately, when legal agreements become stuffed with too much “legalese” and over-complicated, they actually have the opposite effect. Instead of establishing trust between entities, these bad contracts can actually erode trust. The result can be either no agreement at all, or one that can spawn a dispute that quickly devolves into a costly legal mess.

Why You Should Distrust a Badly Written Contract

• A complicated contract may conceal harmful terms. Dishonest or predatory people like ambiguous or confusing contracts because they can sneak wording into the deal that favors them at the other party’s expense. You could agree to a bad deal just by not understanding it.
• Complex agreements are easier to violate by accident. If you don’t understand your responsibilities under the deal, you’re more likely to unintentionally break the terms of the agreement, inviting a lawsuit.
• Bloated contracts are expensive to litigate. Not only will it take a lawyer more billable time to interpret it, but disputes are more likely to land in court with a confusing contract.

Avoiding Bad Agreements

When evaluating a business contract, don’t confuse clear or concise for overly simple. A well-written agreement can be detailed, yet readable at the same time. As shown in the following quote, contracts drafted in plain language are advisable, and have been the trend for awhile:

“Contracts should be drafted in plain English,” explains The Business Journals. “Clarity is paramount. Ambiguity must be avoided. If a dispute arises, the more clearly the contract is written, the easier it will be to sort out each party’s rights and obligations. Moreover, no business owner wants to pay for lawyers to fight over ambiguous terms only hoping that a judge or jury will decide in their favor.”

For insight in evaluating a dubious business contract, call an experienced Dallas business law attorney today at Armstrong The Law Firm, P.C., today at 972-424-L-A-W-S (5297).

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Armstrong The Law Firm, P.C.
Plano Location
1400 Gables Ct #103
Plano, TX 75075

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5601 Bridge Street, Ste. 300
Ft. Worth, Texas 76112

Phone: (972) 424-5297