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HICCUPS IN USE OF FREE CONTRACT TEMPLATES

Legal Write Ups

HICCUPS IN USE OF FREE CONTRACT TEMPLATES

In this data driven society, data is everywhere but it may lack reliability and accuracy. So digital citizens need to know the internet gives easy access to download and use free contract for your business.  Which is really handy plus saves money instead of spending money for legal fees. Does it worth to use free contract templates? Reconsider before using free contract templates in view of the below drawbacks:

Lack of Tailored Contractual Terms:

Free template /form of commercial contract will not be tailored to your specific requirements. Contracts are useful if they clearly reflect intentions of the parties and considers the situation which is lacking in use of free contract template. There may be unclear clauses or you don’t understand the clauses if yes then its business risk and may lead to costly litigation in future.

Missing of EssentialContractual Terms:

Based on specific needs and agreed terms contracts made up but in free contract there may not be provision that you needed which really affects the transaction and relationship.One of the vital problems of using ready contract template or form is that contract executors does not know when something isn’t there that particular provision/s should be a part of contract and how that could hurt the contracting party in the future.

Omission of Crucial contractual Language

Free contract template commonly uses boilerplate or some standard language so chances are more toomit crucial language in the contract or fail to include required language or adding an ambiguous or confusing statement or vague terms which later gets used against your business.

Adding up Unintended Obligations:

There may be a Term in the contract that requires you to do something you did not want or intend to do thereby added burden and unintended consequences for a business.

Failure to add Legal Provisions

Specific language requirements or addition of provision based on the state law or govt regulations t may be missed for a contract that can invalid the contract or make it unenforceable or certain provisions of the contract unforceable

Missing Provision for Appropriate Dispute Resolution:

Prior signing the free boilerplate contract template business owners should consider their potential remedies if there is breach or non-fulfilment of obligations by either party. For swift and cost effectiveness arbitration is mostly preferred by business entities for dispute resolution in place of costly litigation.

Choosing Non-Appropriate Contract Template:

Business people usually being non legal professionals lacks knowledgein this regardso who may without professional help end up choosing wrong template and consequently binding unintended obligations or missing its remedies.

One Sided Contractual Terms:

Free template may be consisting terms and language which is favourable to one party and not to the other. For instance, the standardization could have been done on the part of the company issuing the contract. If so, use of that free contract template by the other party without negotiating terms will increase its risk.

Lacks Holistic Approach and Professional Touch in Contract:

As free contract templates are not framed and drafted considering the specific transaction and its repercussions and thereby contractual parties fails to get to know the law and their rights in and around the commercial transaction.

It is always advisable to work with an experienced commercial lawyer to draft & negotiate the contract prior execution for any kind of business especially if you are a start-up or a small business who does not in house counsel needsto be extra cautious to protect the business as much as you can instead of utilizing free contract template. Plus, it’s crucial to know how an agreement impacts your business, how to reduce the risks well as future disputes.

Disclaimer: The information provided under this website is solely available for informational purposes only, should not be interpreted as soliciting or advertisement. We are not liable for any consequence of any action taken by the user relying on material / information provided under this website. It’s not legal opinion in cases you have any legal issues then in all those cases you must seek independent legal advice.

* Write up by Team Purple Pursuits, for more details you can reach to us [email protected]

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