There was a time when a handshake and your word was as good as any written contract. Those days, unfortunately, have long since past.  Today, reaching an agreement and getting it in writing is a key to any successful transaction.  Most people will enter into hundreds of contracts during the course of their lifetime, such as: entering into an employment agreement, opening a bank account or applying for a loan, renting an apartment or house, purchasing a vehicle, hiring a contractor to make home repairs, ordering products to be used in your business, entering into a partnership agreement, leasing an office for your business, purchasing an existing business, and buying a home.  Here are a few suggestions to keep in mind when you are considering entering into your next contract.

Read it (Yes, even the fine print)!

I am absolutely shocked how often people say to me: “You must be an attorney because nobody else spends time to read that paperwork.”  When you enter into a contract, it is important to know what it is that you are agreeing to do (or not do).  The need to read and understand the terms of the contract becomes even more critical the higher the cost at issue.  It is often said that the ‘American Dream’ is to own your own home or business.  Although these generally are the largest single investments people will ever make, many people do not take the time to read the stacks of paperwork that make up the contract.  If you are not going to read the paperwork yourself, at least hire an attorney to ensure that you are buying exactly what you think you are buying.  The terms that make up a contract really do matter.

Clarify it!

It has been said that the practice of law is simply the science of words.  An outrageous example of this was Bill Clinton’s response to a question before the grand jury, wherein he famously stated “It depends on what the meaning of the words ‘is’ is.”  Do you and the party you are entering into a contract with have the same understanding of what the terms mean?  If there is ever a dispute and you are unable to come to a prompt agreement, you may end up spending a lot of time and money having the court interpret the terms for you.  At that point, the control over the interpretation may be out of your hands completely.  For guidance on making that determination, the court may look at things such as: 1) the history of previous dealings between the parties, 2) the understanding that is common in the industry, 3) the terms as developed by our lawmakers or in the courts, and 4) public policy considerations.  As a result, the court’s interpretation of the terms of the contact may end up being the exact opposite of what you actually intended the terms to mean.  Always make sure the terms are clear and unambiguous before you sign the contract.  If you are not clear about a term, ask for clarification before you sign the contract.

Keep it!

Make sure that you always keep your original contract, as well as any modifications and correspondence regarding the contract.  It would be nice if everyone kept their word and abided by the promises contained in their contracts.  Since that is not the case, however, you may need to hire at attorney to enforce your contract.  Having all relevant documentation related to your contract is critical in this regard.  An attorney cannot give you thorough legal advice about your rights without the documentation of the contract any more than a doctor should give you a diagnosis of illness without doing a thorough examination.

Consult an Attorney!

Being penny-wise by not hiring an attorney up front may end up being pound-foolish for you in the end!  Spending a little money to have a qualified attorney review your contract (and revise as necessary) at the beginning will give you peace of mind that your intent will be carried out with less stress, headaches and expense in the long run.  If you would like to consult with an attorney to review your contract, call Bogin, Munns & Munns, P.A. at (352) 332-7688 in Gainesville or (407) 578-1334 in Orlando.

– Adam S. Towers , Esq., is a shareholder and manages the Gainesville office of Bogin, Munns, & Munns, P.A., a full service law firm with offices in Orlando, Clermont, Kissimmee, Deltona, Daytona Beach, Ocala, Melbourne, Gainesville, and Leesburg, Florida.  He welcomes questions and comments regarding the above and can be reached at atowers@boginmunns.com.

NO LEGAL ADVICE: This blog entry is not intended as legal advice nor should you consider it as such. It is intended only as general information.  You should not act upon this information without retaining professional legal counsel. Please keep in mind that merely subscribing to or reading this blog or otherwise contacting Bogin Munns & Munns, P.A. in the manner that you have will not establish an attorney-client relationship with our firm. Bogin Munns & Munns, P.A. cannot represent you until the firm knows there would not be a conflict of interest, and the firm determines that it is otherwise able to accept the engagement.