Business transactions are any dealings which result or require the formation of a contract. A contract is a firm agreement that a court will enforce through rulings, orders and judgments.
In Texas, there are three broad categories of transaction that most frequently require a written agreement. (1) A contract for sale of goods to an end-user. (2) A contract with a vendor of goods and services for sale to another business that sells to the end-user. (3) A joint venture or partnership agreement between companies to provide goods and services to a mutual customer.
There are many pitfalls in the writing of a contract. Common problems that can arise are (a) failure to identify the subject matter of a contract, (b) failure to specify price or how price is to be paid, (c) failure to identify conditions precedent, that is, conditions that must exist for the contract to be valid, (d) failure to specify the time for performance under the contract, (e) failure to specify when performance is excused under the contract, (f) failure to specify who will carry insurance on the transaction and in what amount, and (g) failure to specifically state who is responsible for doing what under the contract.
These examples of poor contract drafting are what lead to log drawn out lawsuits down at the courthouse. A small investment in a well drafted contract can save much cost and anxiety later on when a deal falls apart.
The above-listed information is offered to the public for general information purposes only. It is not intended to be specific legal advice. It is not a substitute for personalized advice rendered by a legal professional based upon the individual facts of any particular case. Every legal matter is unique. The reader is encouraged to seek personalized legal counsel on their individual case. Stephen E. Menn does not offer tax advice. Stephen E. Menn is not board certified in any legal specialty by the Texas Board of Legal Specialization. Stephen E. Menn is an attorney licensed to practice law in the state of Texas since 1983. Stephen E. Menn has been licensed to practice law in federal court since 1985.