How to prevent disputes in startups?

The contract is the only way to prevent disputes and conflicts in professional relations. Recognized legally, this document commits both parties by virtue of its legal value. It is recommended to be attentive to the clauses and terms of the contract to effectively protect your business. Prevention begins with good writing.

Prepare for the drafting of the agreement

It is important to prepare the agreement well before embarking on the drafting of a contract because it will serve as the basis for a good relationship. Before drafting the contract, make sure of the reliability of your co-contracting party and of the maximum guarantees. To do this, the first thing to do would be to find out about the creditworthiness of the co-contracting party. In insolvency, your supplier or customer will not be able to meet their obligations. Consider checking the financial health of the joint venture company. During discussions and meetings, it is essential to know your co-contractor and his company well, ask him about plans for the future, how long has he been in business, what about his financial health, etc. Get advice from analysts to better interpret the data. They will establish a solvency inquiry and put forward recommendations - Learn more on support in drafting of a business contract.

The writing itself

There are two kinds of clauses which must be taken into account in a contract: clauses guaranteeing against default and clauses which anticipate litigation. In the event of late payment or failure to fulfill its obligation, the penalty clause specifies the rate of damages owed by the debtor. Again, it is best to speak to a lawyer so as not to risk having the clause revised.

Outraged the prevention of unpaid debts, other clauses also make it possible to anticipate the dispute.This is the jurisdiction clause and the resolutive clause.The first specifies the competent jurisdiction in the event of a dispute and makes it possible to prevent the judge's decisions.The termination clause, for its part, emphasizes that in the event of failure to fulfill the obligation, the contract is canceled without the judge intervening.This clause, however, is not valid for all contracts.Remember that if these clauses are poorly drafted, they will not be effective overall.To ensure good prevention of disputes, call a legal professional to find the most suitable clause for each contract.