When drawing up supply contracts, hiring a business attorney to draft your agreement could save you from potential complications with the contract in the future.

A Detroit business attorney who understands your manufacturing business can think outside the standard contract and add any clauses specific to your needs. These are some of the things you might want to include in your supply contracts:

  • Decide who pays the legal fees if things go wrong: If you end up in a dispute over your supply contract, there will be legal fees involved. You may want to insert a clause to cover any attorney fees if there is a breach the contract by the opposing party.
  • Define the rules, especially in out-of-state situations: Different states have different laws. If your supply contract crosses the state line, decide which state rules apply and where a potential lawsuit would be heard.
  • If it’s not written down, it didn’t happen: If you agree to something, it is important to have it documented in writing. An integration clause specifies that the contract you are signing supersedes anything that went before. Anything previously agreed upon that is not in writing is irrelevant.
  • The end of a clause is not the end of the contract: A severability clause makes some or all terms independent of each other. A problem with one clause will not render the whole contract invalid.

The internet is full of deceptively simple supply contracts. Using one of them could prove more complicated than you imagine.