Do you intend to get into a contract? Could be you want to sell an asset, create a business partnership or formulate a family law agreement. Below are a few ways that a lawyer can help you when making a contract.
The Legality of the Contract
The activity that the contract covers must be legal in Australia. As such, you cannot have a contract to conduct illegal activities such as drug or human trafficking. The agreement must also meet the following requirements:
- Both parties must be of sound mind
- Neither party should coerce the other into signing the agreement
- The agreement should have an offer and acceptance. It could be from one or all parties
- Both parties must be ready to make the contract legally enforceable
Negotiations
Give your lawyer a background brief on the purpose of the agreement. They will check the terms of the contract and advice, whether those are fair. For instance, when negotiating a property settlement agreement with your former spouse, the lawyer can help you identify discrepancies that could put you at a disadvantage. For example, if you have been unemployed, the lawyer will help you negotiate fair alimony. When formulating a business contract, your solicitor will assess the risk that the contract exposes you to. For instance, could be you risk losing a major client or damaging your company reputation? Your lawyer will meet with the solicitors representing the other parties and negotiate the terms of the agreement.
Contract Clauses
Your lawyer will ensure the contract has clauses to protect your interests. For instance, when buying a property, the lawyer will include a contingency that allows you to conduct a property inspection and check the strata bylaws before purchasing the property. You are free to opt-out of the contract if the property is in a deplorable state. When getting into a business contract, the contingency could be that the other party should provide bank documents or evidence that they have sufficient inventory.
An amendment clause allows parties to change the terms of the contract due to changing circumstances. For instance, in a business contract, parties could agree to increase or reduce the services provided. A termination clause is a vital element of any contract. It describes the terms of contract termination. For instance, the party seeking a service should pay their debt.
When formulating a contract, a lawyer will help you assess the legality of the agreement. The solicitor will also negotiate the terms of the contract and include clauses that protect your interests.
To learn more, reach out to a lawyer in your area.
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