What’s the biggest mistake businesses make with contracts?

Using vague terms, like “deliver promptly,” is a top mistake, as it leads to disputes. Revolution Law’s post emphasizes clear communication, so specify details like “deliver by 5 PM Friday” to avoid breaches.

Are oral contracts a mistake for businesses?

Oral contracts can be binding but are hard to prove, making them risky. Always use written contracts to reduce disputes.

Why do signatures matter in contracts?

Signatures confirm agreement and are required for contracts under the Statute of Frauds, like real estate deals. Without them, contracts may not be enforceable.

How can I ensure my contract is legal?

Check that the contract’s purpose complies with local laws, as Revolution Law notes. For example, a contract to sell restricted goods is void. Consult a lawyer for clarity.

What’s a termination clause, and why is it important?

A termination clause outlines how to end a contract, like “30 days’ notice.” It prevents disputes by setting clear exit terms.

Common Mistakes in Contract Agreements and How to Avoid Them

By: Scott Meyers

Avoid costly contract disputes by learning the top mistakes—like vague terms or missing signatures—and how to fix them with clear, written agreements.

Introduction

Picture this: You sign a deal with a supplier, but months later, you’re stuck in a dispute because the contract didn’t specify delivery dates. Sound familiar? Small businesses often face costly contract mistakes that could have been avoided. In Revolution Law’s blog post, “Understanding Contract Claims: When Promises Become Legal Obligations,” they highlight the importance of clear communication to make promises legally binding. But what happens when contracts go wrong? This guide dives into the most common contract mistakes—like vague terms or missing signatures—and shows you how to sidestep them. By learning these pitfalls, you can protect your business and keep deals on track. Let’s explore how to get contracts right.

Explanation

Contracts are the backbone of business deals, but simple mistakes can turn them into headaches. As Revolution Law explains, a valid contract needs an offer, acceptance, consideration, capacity, and legality to be enforceable. When these elements are mishandled, disputes arise. Here are five common mistakes and how to avoid them.

First, vague terms cause confusion. For example, a contract stating “deliver goods promptly” leaves “promptly” open to interpretation. If a supplier delivers late, you may struggle to prove a breach, which Revolution Law defines as failing to meet obligations. Fix this by using specific language, like “deliver 100 units by 5 PM every Friday.”

Second, relying on oral agreements is risky. While oral contracts can be binding, they’re hard to prove without documentation. A verbal deal for a marketing campaign might lead to disagreements over scope if nothing’s written down.

Third, missing signatures undermine enforceability. A contract without both parties’ signatures may not hold up in court, especially for deals covered by the Statute of Frauds. For instance, a real estate lease needs signatures to be valid.

Fourth, ignoring termination clauses invites trouble. Without a clear way to end the contract, you’re stuck if a vendor underperforms. Revolution Law mentions remedies like rescission, but a termination clause (e.g., “30 days’ notice”) prevents disputes by setting expectations.

Finally, overlooking legality can void a contract. If your agreement involves something illegal—like selling restricted goods—it’s unenforceable, as Revolution Law notes. Always ensure your contract’s purpose complies with local laws.

These mistakes often lead to breaches, costing time and money. By addressing them upfront, you align with Revolution Law’s advice to communicate clearly and avoid disputes.

Practical Tips

Avoid contract pitfalls with these five tips:

Be As Specific As Possible: Write clear terms, like “payment of $2,000 due by the 10th of each month starting on September 10, 2025.”
Put It in Writing: Use written contracts whenever possible to avoid issues of proof and disagreements about terms.
Get Signatures: Ensure all parties sign, especially for major deals like leases.
Include Termination Clauses: Specify how and when the contract can end, e.g., “either party may terminate with 30 days’ notice.”
Check Legality: Confirm your contract’s purpose is legal with a quick legal review.
Store signed contracts securely and review them before signing. For complex deals, consult a lawyer to catch errors early.

Conclusion

Contract mistakes can turn a promising deal into a costly dispute, but they’re avoidable with care. Revolution Law’s post on contract claims emphasizes clear communication, and by dodging vague terms, oral agreements, and other pitfalls, you can create enforceable contracts that protect your business. A little planning now saves big headaches later. Visit Revolution Law for more insights, and consult a lawyer to ensure your contracts are bulletproof.

Revolution Law Group is located in Greensboro, NC, and serves individuals and small businesses throughout the Triad and surrounding areas. To contact us please visit Revolution.law or call 336-333-7907.

The information included here is for informational purposes only, is not exhaustive of all considerations when creating documents, is not intended to be legal advice, and should not be relied upon for that purpose. We strongly recommend you consult with an attorney and do not attempt to create your own documents.