What Is a Business Contract and Why It Matters in Nevada
Running a small business is a juggling act and you often must deal with vendors, employees, and customers, at the center of many of those relationships is a contract. While it may not be that exciting or the focal point of your business, a well-drafted contract is one of the most important tools for protecting your company.
What Makes a Contract?
A contract is an agreement that creates legally enforceable obligations. To be valid, it generally needs the following:
- Offer – one party proposes an arrangement
- Acceptance – the other party agrees to the terms
- Consideration – something of value (money, goods, or services) is exchanged
- Mutual intent – both sides intend to be bound
- Capacity & legality – the parties are able to contract, and the agreement is for a lawful purpose
There can be several other aspects of a contract including termination provisions and dispute resolution provisions. An experienced Nevada business attorney can help ensure your contract is valid and enforceable and also strive to have all the provisions clearly defined to help prevent disputes in the future.
Verbal vs. Written Contracts in Nevada
Both written and verbal contracts may be enforceable under Nevada law. For example, a handshake deal to perform services can still create legal obligations.
However, certain agreements — such as real estate transactions or contracts that cannot be performed within one year — must be in writing.
While verbal contracts may be valid, they are notoriously hard to prove and there can be more confusion as to the terms. This is why most Las Vegas business attorneys will recommend putting agreements in writing and ensuring the written agreement is clear and has the required elements. A well written legally enforceable contract often provides clarity on expectations, obligations, and remedies — and it can prevent misunderstandings from turning into lawsuits.
Why Contracts Matter for Small Businesses
Contacts are key for small business as they affect almost every part of the company, including:
- Vendors/suppliers
- Customers
- Employees
- Partners
- Advertising/Marketing
- Real Estate
A poorly written contract can leave gaps or have inconsistencies that can lead to disputes. Litigation over contract disputes is expensive and time-consuming. Having a small business lawyer review your agreements before they are executed general is far less costly than fighting over them later.
Contracts are the backbone of small business, so protect your business by working with a knowledgeable Las Vegas business attorney to prepare or review your contracts for enforceability, clarity, and to help avoid costly litigation.
If your business needs help drafting or reviewing a contract, contact Connor & Connor PLLC today to help protect your business.
