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

Why a Qualified Dallas Business Law Attorney Should Review Your Vendor Contracts Before You Sign Them

Dallas business lawyer, Richard “Ric” Armstrong, discusses the potential legal pitfalls often hidden within vendor contracts.

When negotiating contracts with vendors, or anyone else, for that matter, the basic rule applies: If it’s not in writing, you can’t enforce it. Many business owners mistakenly assume their vendor contracts are “standard issue,” that their interests are automatically protected when in fact, they are not. Before you sign any vendor contract, have it reviewed by an experienced business attorney to make sure all important bases are covered.

What can go wrong with your vendor agreements? Here are just a few pitfalls that often go unnoticed by business owners, but that a trained legal eye can quickly detect:

• Your intellectual property is unprotected. If the vendor is selling you something that involves it using your trade secrets in the process, what steps will the vendor take to protect your proprietary information? Is there a non-disclosure agreement with the contract? Who retains ownership of the product or design the vendor is providing, and how does that ownership affect your future relationship?

• Language is too vague. What exact service or product is the vendor providing, and by when? When is payment expected? Is payment based on completed tasks or calendar dates?

• There’s no room for the unexpected. What happens if unforeseen circumstances cause deadlines to be missed? Is there a “pause clause” in the contract? If there is no provision in the contract for adapting to the unexpected, you could be liable in unforeseen ways.

• There’s no exit strategy. What happens if you decide to part ways with the vendor, or vice versa? How are assets divided? How is partial payment handled? Every good contract should contain specific language about terms of cancellation.

No matter how cheap the vendor is, or how well-recommended, your contract is your only source of legal protection if something goes wrong. Make sure your vendor contracts don’t leave you vulnerable. To contact a Dallas business law attorney for advice on vendor contracts, call Armstrong The Law Firm, P.C., 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

Fort Worth Location (By Appointment Only)
5601 Bridge Street, Ste. 300
Ft. Worth, Texas 76112

Phone: (972) 424-5297