Updating contracts is important. It is an ongoing task your company should be sure to pay attention to.
What is a Contract?
A contract is a legal instrument where two or more people or entities agree to exchange something or service of value. You can find more on what a contract is here. Contracts have essential elements.
Most every type of contract will need regular review and updating. However, some need this more often. You should update your contracts most often if they are customer facing or employment related.
Updates in Your Organization
When your organization has major updates, that is a great time to look over your contracts. You should be spending time reevaluating your contracts to see if they still accomplish your goals during expansion plans, mergers or acquisitions, or changes in products offered.
For example, if you hire your first salesperson, it is a good idea to ensure the language of the contract is clear since you will no longer be the person negotiating with the customer.
Updating Contracts As They Come Up
The most common way someone ends up updating their contracts is as the need arises. This is a good and bad practice. Ideally, you will have a perfect contract that applies to all situations right from the start. However, this isn’t possible. Especially in small businesses, you will find the need for a part to be clearer or add different rules for the next relationship. Every clause in my firm’s engagement letter has a story behind it. I’ve updated my contract as I’ve encountered situations where I wish I had certain clauses.
Changes in the Law
The law changes. For example, in March of 2017, a major change to contract interpretation was decided by the North Carolina Supreme Court. After that, most non-compete agreements drafted in the previous year and a half became unusable.
In conclusion, updating your contracts is a very important step in your legal protections. Fortunately, you don\’t always need your attorney to make these changes as they come up.
If you would like to discuss updating your contracts, please feel free to contact us with the form below. Additionally, we can be reached by emailing email@example.com or by calling 919-912-9640.