Skip to Content
Call Today: 313-546-9685

What sort of language should I include in my contracts?

Hubbard Snitchler & Parzianello

What sort of language a business will want to include in their contracts will vary widely depending on a number of factors. Here are just some examples of these factors:

  • The type of business or industry involved
  • The purpose of the agreement
  • Who is signing the agreement
  • Practicalities like whether the parties who are going to sign will negotiate language

Still, there are some common contractual provisions that appear in many business agreements. It is important that these provisions, as well as the rest of the contract, get drafted thoughtfully and carefully.

To give just a few examples of common provisions, a business might find it cost-effective to control their risk of litigation by insisting on an arbitration provision in their contracts.

When drafted properly, businesses then can count on any disputes about the agreement going through an arbitration process rather than getting settled through unpredictable and potentially expensive lawsuits.

Most contracts will also address important questions of forum and choice of law. Basically, these contractual provisions will clarify where the parties signing the contract can file suit if there is a dispute. They also should spell out which system of laws will apply.

A Michigan business might find it to their advantage to have contracts which require suits in Michigan courts and the application of Michigan law.

Most contracts will also require some provisions to protect a business’s confidential information and trade secrets. In many cases, the business will also want the contract to include non-competition provisions.

It is important that language in contracts gets negotiated, drafted well

A Detroit-area business should discuss the specifics of what language should or should not go into a contract with an experienced business law attorney.

It is also important that whatever language does wind up in contact be clearly drafted and explained. Proper drafting of a contract can prevent expensive legal disputes down the road.

  • Facebook
  • Twitter
  • LinkedIn
Share To: