In Michigan, when two parties come to a mutually understood agreement that they intend to have legal force, a contract is created. There are both written and oral contracts, since all that is required is that the parties agree and understand each other. In business transactions, written contracts are typically preferred for their reliability. These documents are best drafted by those who understand the law, because the very reason for a contract is to legally obligate the parties.
Negotiating a Contract in Grosse Pointe Farms
Negotiating the particular terms of a contract is crucial. There are several terms that should be included in every Grosse Pointe Farms contract to ensure that the agreement protects the interests of the parties. Being upfront about your intentions early on can be helpful, because it allows the terms of the contract to be decided based on clear expectations. Lastly, a clause that determines how to handle a dispute under the contract may be worthwhile to negotiate.
Using a Form Contract
Form contracts can serve as a good starting point for a sound agreement. Lawyers in Grosse Pointe Farms, Michigan often keep past contracts on file, and can add or remove terms based on the situation. They can also reword the specific language of form contracts to make them more clear. However, form contracts can pose problems if they need to be interpreted by courts, particularly if they are used without the advice of an attorney. First, parties are less likely to read form contracts completely, which may lead to one side being unaware of their duties under the contract. Second, form contracts often use words and language understood only within the legal community. This may cause parties to agree to a clause they don't really understand. Lawyers can help ensure that a written contract matches the intent of the parties, whether negotiating a contract or using a form. Michigan contract law is a field in which many Grosse Pointe Farms lawyers have specialized.