If you are entering a business agreement with another person it is important that both of you know what you are getting into. This is why the contract is so important. This is the document that will bind the two of you together and ensure that both parties follow the designated guidelines.
Before you enter into the contract there are some things that you need to do. Here are a couple ways things to do:
1. Get A Letter Of Intent
A letter of intent is an important part of the whole contract process. This is the pre-contract that is non-binding. This will be to both of your advantage. You need to be able to write out the contract and look it over with both of you taking it seriously, but not being legally bound to each other yet. A letter of intent can do just that.
A letter of intent says that you are both serious about making a merger or an agreement together; but that there are certain conditions that need to be met before you have an actual agreement. The letter of intent is not legally binding for either of you. Thus, if either of you feels uncomfortable at any time, you can sever the relationship without any legal ramifications.
If the other party does not offer a letter of intent, you need to talk to an attorney and have one drawn up.
2. Do Your Due Diligence
If after you have signed a contract you have a problem with the company, you cannot use the excuse "I didn't know." The courts expect you to go through and make sure that you understand the company that you are going through the process with and that both of your understand what you are signing and agreeing to.
This might mean that you need to do a background check, look into their books, and investigate the company.
3. Don't Sign If You Don't Understand
You should never enter a legal agreement without a lawyer. You need the lawyer to explain everything to you so that you have all the information. You are expected to take care of yourself. If you choose not to get a lawyer, the courts will not have pity on you if things go south. It is actually the opposite. They expect you to do everything you can do protect yourself. So get a lawyer to make sure you have all the information.
These are just a couple things you should do to protect yourself and be prepared for a business agreement. To learn more, contact a professional business lawyer for more help.
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