Any party involved in your business, be they employees, partners, shareholders, suppliers or clients, should sign contracts. This ensures you and the other party are protected. However, disputes relating to contracts may arise in the future. A party may breach a term in the contract they signed. While this may be intentional, in some instances, it may be due to ambiguity or vagueness.
It’s crucial for agreements to be clear. Here is how you can do this.
You should be specific in your contracts. Avoid words like reasonable, undue delay, prompt, material and satisfactory, to mention but a few. You should clearly state what is expected of the other party.
For example, you should inform a supplier that they need to make deliveries within three days instead of a reasonable time. In the employment contract, you should be clear about what employees should do (their duties, performance and so on).
Being specific in your contracts can help prevent misunderstandings.
Avoid statements with more than one interpretation
A statement can be specific, but two parties can interpret it differently. For example, “satisfactory work.” Such a statement should not be in your contracts, as it increases the chances of a party breaking it. It helps to provide the definitions of vital terms at the beginning of contracts to ensure you and the readers get the same meaning from a statement.
Avoid conflicting terms
Another aspect that can make a contract ambiguous is conflicting terms. All clauses in your contracts should be in sync. Always go through your agreements to spot and correct such mistakes.
It’s crucial to have clear contracts. You should get legal help to review your agreements to avoid disputes.