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3 effective strategies for preventing contract disputes

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When you own and operate a Florida auto dealership or another type of business, you may rely on contracts that outline each party’s expectations and obligations. If either party fails to follow the guidelines dictated in the contract, a contract dispute may arise, which may take time and money away from the business.

Per Inc.com, contract disputes are quite common in business, but many of them are also avoidable. Here are three steps to consider taking when creating your contracts to help you and your business avoid these expensive and time-consuming disagreements.

1. Use clear, concise language

You want your contracts to be extremely clear so that they leave nothing open to interpretation. If any of the wording in your contract is unclear, it opens the door for someone to challenge its intent.

2. Use a notary when executing the contract

It pays to have a notary on hand when signing business or customer contracts. The presence of the notary offers several benefits. First, it makes it impossible for any party involved to say they never signed the document. Second, it makes everyone signing the document more inclined to read it end-to-end.

3. Address the future

It may benefit you to account for future changes when drafting your contract. If the contract cancels at a certain date, specify as much. What happens if someone who signs the contract dies while it is still in place? The more you account for these future variables, the better your chances of avoiding contract disputes.

A strong contract is one that offers protection for everyone involved. It is important that you follow all necessary steps when drafting and executing the contract to make sure it holds up if you find yourself or your business embroiled in litigation.