When it comes to contracts, if you do not have one that is properly structured, it may lead to significant issues. Contract negotiation is one side of the coin, but then drafting something that addresses everything contemplated during negotiations is critical.

What happens if a contract is wrong or contains some element that renders it unenforceable? Make sure you do not make one of these three common mistakes that lead to contract disputes and litigation.

  1. The breach terms do not exist

The most glaring error is a breach of contract section that fails to define what constitutes the failure. Believe it or not, it is the single most committed error in contract law. A breach occurs when something in the agreement does not happen. Defining the parameters of this may sometimes get overlooked.

  1. The remedies of a breach do not get defined

After a person commits a breach, a repercussion must occur. These remedies spell out how the breaching party will correct the wrong. These two factors – wrongdoing and consequence – tend to lead to the most litigation. How? If the contract does not detail the act and remedy, the offending party may attempt to say he or she did nothing wrong. It is then up to the court to determine who is in the right.

  1. The contract gets mixed in with others

In business, it is typical to have more than one contract between parties for various things or simply because the parties revise the terms. If there is no clear definition of how one agreement fits with the others, it could create a problem. For instance, does the newer agreement take the place of all the others that came before, or is just one clause or facet of it in effect?

The best contracts contain specific language and hash out all the details with specificity. You can never have too much detail when dealing with business contracts of any kind.