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Does small business law deal with contracts?

On Behalf of | Oct 8, 2018 | Small Business Law |

Entrepreneurs embarking on their first startup experience might expect to spend more time on the creative aspect of their businesses and less on the nitty-gritty legal side of things. However, any time that a person starts a business in Wisconsin he or she will need to deal important issues pertaining to small business law. This includes writing comprehensive and enforceable contracts. 

Contracts may feel unnecessary during the early days of a business, but they are essential for protecting everyone involved in an agreement. Not only is remembering exactly what each party agreed to difficult, but some people may purposely try to circumvent their obligations. A contract removes any uncertainty from an arrangement, making it easy to demonstrate that another party did not honor his or her word. This can apply to anyone from a supplier to an employee. 

Business owners will need to make sure they hit a few key factors when crafting their contracts. First and perhaps most importantly, a contract cannot be about anything illegal and can only enforce a legal subject matter. The contract must also include an offer from one party and an acceptance by another. This most often involves a consideration, which means there is an exchange involving something of value. This could be money, a product, time and more. 

While contracts can be verbal, written and signed paper contracts are often more effective. This is especially important for Wisconsin entrepreneurs taking their first steps into the world of their new business who might not have the wiggle room for a supplier, employee or partner to go back on a promise. Since small business law can be complicated, working with an attorney who is experienced in small business law can help ensure that all contracts are legal and enforceable.