When you sign up for a service, how often do you read the “user terms?” Usually, this is a long, complex block of text full of legal jargon that many people do not take the time to read.
Unfortunately, when it comes to business contracts, if you make things too complicated, it can result in serious consequences for your business and partners. Keeping things simple is the best option.
Complex contracts lead to uncertainty
A contract comes into play when you start a new business relationship with a vendor, partner or client. If you or the other party fails to read the fine details, you may not even know what you agree to.
Complexity causes uncertainty, and you need to keep things clear and defined regarding business relationships.
You can do this with simple contracts that clearly outline the terms, expectations, and other important elements in clear language. It will ensure everyone stays on the same page and minimize delays that may hinder business growth.
Focus on plain language contracting
Instead of utilizing legal jargon that most people don’t understand, use plain language. All this means is that you describe your relationship and what both parties must do to keep things in good standing. If legal jargon is used (for any reason), consider explaining what it means in the contract.
Keeping contacts simple
By keeping things clear, concise and simple, you will be in a better position to avoid misunderstandings and costly litigation due to a breach of contract down the road. If there is uncertainty regarding where one person in the business relationship stands, this can result in confusion and litigation most businesses want to avoid.