Not always! A poorly written detail can turn into a nightmare.
Picture this: you signed a contract that seemed promising, but months later, an ambiguous clause ends up becoming a serious problem. Believe it or not, this story is more common than you might imagine. The good news is that there’s a shield — and these concerns can be mitigated, as you’ll see below.
The market is constantly changing, and contracts need to keep up with that evolution. We are no longer in the era of standardized, impersonal contracts. Today, each business has its own particularities and specific needs, and therefore, there is no longer room for “off-the-shelf contracts.” Customization is essential for any business, while generic and outdated clauses can be fatal to yours.
Imagine a tech startup signing a contract with an external developer to create exclusive software. Everything seems fine, but a poorly drafted clause about intellectual property creates a huge issue: months later, the developer claims rights to the code, trying to prevent the company from marketing the product.
Situations like this, for example, can be avoided with well-drafted contracts that make it clear from the beginning who owns the rights to what is created.
Furthermore, well-structured contracts provide efficient methods for dispute resolution, such as arbitration and mediation, which are generally faster and less costly alternatives than traditional courts. It’s like having a shortcut to solve problems without the sluggishness of litigation.
Therefore, before signing any contract, it’s essential to:
(i) understand the particularities and specific risks of your company — after all, what works for one business may not be suitable for yours;
(ii) verify whether the business and commercial issues are aligned with the company’s interests and strategy; and
(iii) rely on the expertise of specialized professionals to draft a contract that accurately reflects your objectives, minimizing risks and ensuring your business’s legal security.
And remember: it’s very important to periodically update your contracts to ensure they continue to meet your company’s needs and comply with new rules and laws.
So then — are your company’s business contracts protected, or are they exposed to risks?
