According to SelectFlorida, the Sunshine State exports almost $62 billion in services per year and provides a “pro-business climate” for entrepreneurs. Much of this activity is governed by strong business contracts. These contracts facilitate various deals and business connections, forming a foundation for effective relationships between suppliers, manufacturers, franchisees, customers, consultants, and many other moving parts that make up the Florida economy. When that foundation begins to crack, the machine fails – and litigation may be the only remaining option to resolve contractual disputes. A business contracts attorney may be able to help companies avoid this issue with a proactive, preventative approach. An effective contract may take into account business needs, priorities, and goals – and company leaders may wish to discuss these factors with a Florida business lawyer before beginning the drafting process. Consider continuing this conversation with Clearwater Business Law by contacting us at (727) 502-6874 – or by visiting our office in Clearwater, Pinellas County.
Common Types of Business Contracts in Florida
There are many different types of business relationships in Florida, and parties can formalize most of these relationships with contracts. The type of assistance offered by a business contracts attorney depends on the specific type of contract parties are attempting to create.
Sales Contracts
The sale of goods and services is a driving force behind a powerful economy, and it provides businesses with income. Sales contracts formalize these transactions and ensure positive relationships between buyers and sellers. These buyers could be the direct consumers of finished products, manufacturers purchasing raw materials, or resellers. Companies might also purchase services provided by other businesses, such as construction contractors or consultants.
Businesses can certainly sell products without contracts in place. For example, a farmer selling produce at a local market does not need to force a customer to sign a sales contract before they purchase an orange. However, more complex arrangements could benefit from structured sales contracts. This is especially true if companies depend on each other for the flow of goods and services. For example, a manufacturer may fail if it does not receive raw materials with which to create their finished products. Sales contracts can outline financial penalties for those who fail to adhere to their contractual obligations, whether that involves providing or receiving goods.
Employment Contracts
While companies depend on the flow of goods and services for income, they also rely heavily on employees. Whether a company has a small team or a workforce numbering in the thousands, employment contracts can ensure that both employers and employees are on the same page. Employment contracts can attract talent with benefits and job security. These contracts can also protect employers from issues like poaching, competition, and intellectual property theft. Consider speaking with Clearwater Business Law to learn more about how contracts can prevent intellectual property issues.
In addition, employment contracts can prevent litigation when disputes arise between employers and employees. These contracts usually mandate some kind of alternative dispute resolution (ADR) process, such as arbitration. As a result, employment contracts can potentially save employers from expensive, time-consuming trials.
Partnership Contracts
Each partnership relies on an effective contractual arrangement. The creation of a partnership agreement is a necessary step in the creation of this business structure, and it can ensure the operation runs smoothly well into the future. Although partnerships offer many potential advantages, they can become problematic due to close ties and profit-sharing between partners. If one partner leaves, the parties must review the contract to determine what happens to the shares of the departing individual. A partnership contract can also help resolve or reduce these kinds of disputes with mandatory arbitration or mediation.
What Are the Benefits of Working With a Business Contracts Attorney?
A business contracts attorney could contribute to a Florida business in many ways. Perhaps most obviously, these legal professionals can assist with drafting various types of business contracts, potentially reducing the chances of future disputes and legal issues. Aside from this basic advantage, a business contracts attorney may also assist in various other ways:
Business Contracts Attorneys Can Help You Choose an Appropriate Contract Type
In some situations, companies may have the option to choose between various contract types to achieve the same general goals. For example, options in the construction industry include fixed-price contracts and time and materials (T&M) contracts. Companies can also choose between many different sales contracts in the shipping and manufacturing industries.
For example, a quality agreement can ensure that a supplier of raw materials always adheres to certain quality standards. A reseller might also sign a licensing agreement for permission to use the intellectual property of another company during foreign distribution operations. A business contracts attorney may be able to review each situation and determine which contracts could be beneficial.
Business Contracts Attorneys Can Help With ADR
According to the Economic Policy Institute, arbitration is now an extremely common strategy for companies facing lawsuits from workers and customers. Arbitration and other forms of ADR are often mandatory due to strong contracts put in place by business contracts attorneys. While customers and workers might complain about mandatory arbitration, there is no denying that it can help protect the interests of businesses in Florida.
Arbitration can provide more control over the outcomes of disputes, and it may prevent cases from going to trial. This is an important potential benefit in the age of “nuclear verdicts.” Attorneys can assist by creating strong arbitration clauses that divert disputes away from the courtroom.
Learn More About Business Needs With Clearwater Business Law
Although one might argue that every business needs to carefully consider the advantages of working with a business contracts attorney, these advantages may vary depending on the unique goals of each business. A basic contract template may not be enough to achieve these goals, and could lead to contract disputes. Entrepreneurs may wish to customize their contracts based on their specific priorities. As a result, online research may only represent a basic starting point on the path toward effective contracts. The next step could be to speak with an experienced business contracts attorney in Pinellas County, and an initial consultation may offer opportunities to discuss unique goals in more detail. To continue this discussion, consider contacting Clearwater Business Law at (727) 502-6874. We serve clients in cities like Clearwater, Dunedin, Largo, New Port Richey, Oldsmar, Palm Harbor, Pinellas Park, St. Petersburg, and Tarpon Springs.