Top 3 Measures of Prevention

This article focuses on preventative law and outlines the importance of job scope, operating contract requirements, and a clear appeal process in contracts.

Legal Protection-

Businesses use elements of preventative law to protect company assets and interests from litigation. This legal protection comes in the form of proactive measures included as terms and conditions in contracts and operating agreements. 

Preventative preparation for possible legal suits allows companies to have clear expectations in place in case things do not go according to plan with customers. The following are the top three measures of prevention companies should take to lessen the blow of being sued. 

1.) Scope-

A well-written and well-understood scope of the project is the first measure of protection. It is essential that contracts clearly lay out what the company will do for the customer and how much the completed project or service will cost the customer. 

Be sure to answer these questions to clearly identify the scope of the project- 

• What is the product or service being provided? 
• What exactly is included with this product or service?
• What will it cost?
• When is payment expected?
• When will the work be completed?

Identifying the exact services being rendered or the specific product being delivered ensures that no other work is added to the project and that the expectations of the scope of work are clear to both parties. Defining completion and delivery deadlines and total project costs in the contract are essential to defining the scope of work.  

2.) Partnership Requirements-

Outline the conditions that must be in place to get the job done. The contract should include verbiage listing the accommodations and access needed to complete the work successfully. If a company is hired to install software they need access to the company servers to complete the job. The software company cannot be expected to complete work without reasonable access. Similarly, a landscape installer cannot lay down artificial turf, plant shrubs, and run sprinkler lines if property gates are locked and there is no access to the workspace. Be sure to clearly state what things your company needs in place to get the job done. Also, make it clear that you cannot be held liable for incomplete work if those things are not in place.

3.) Process for Appeal

Establish a process for customers to air their grievances or frustrations. Include language that says, “If there is a problem come talk to us. We will make it right.”

Also, include financial remedies such as a standard reimbursement or early exit clause. What are the payment methods and terms? Will there be penalties for late payments? Is there a discount for early payment? These things should be clear to both parties.

Summary- How We Can Help

Our team of attorneys is experienced in contract review and creation. We will help you include strong preventative protections in your legal contracts. Defining the scope of work, identifying partnership access conditions, and outlining appeals processes in legal agreements are our specialties. We will help you interpret your contracts to understand all liabilities and conditions. We help you consider what stipulations you need in place to do your business deals and protect your interests. We will include all necessary legal clauses and show you exactly what to do in your contracts.

DISCLAIMER- This website talks about various business topics and various legal situations. The statements given by the host or guests or author do not constitute legal advice given to any individual or business. The host and/or guests are giving their personal opinion based on their personal and professional experience. Examples given are given broadly as examples with names removed for privacy. If you do have questions about your business or legal situation, please reach out and email info@businesslegalmanagement.com to discus your business or legal situation.