A good defense is the best offense

Since I handle contract litigation throughout Cook, Lake, and DuPage counties, I’ve seen lots of business disputes. It’s striking how many times the root of the dispute is a bad contract.

Now, I don’t generally involve myself in contract drafting and negotiation, it’s not something I particularly enjoy, so I usually refer such transactional work to my learned colleagues who specialize in drafting contracts. I also know that it’s not practical or cost-effective to have an attorney look over every single contract you make.

The problems arise, however, when things are left unsaid – the classic “handshake.” I’ve handled too many such contracts where the parties weren’t really on the same page, leading to confusion, performance failure, and ultimately, litigation. This is not what you want.

So what to do? Well, first, get things in writing. Yes, a formal contract drafted and reviewed by an attorney is best, but even a handwritten letter outlining what each party is going to perform, signed by everyone involved, is better than nebulous verbal agreement that can be a nightmare to prove – a verbal contract may (there are exceptions) be a valid contract, but if you have to spend thousands of dollars in Court to prove it, is it really worth it?

And for god sakes, if you’re doing a big deal, get an attorney. I’ve seen million dollar deals based on nothing but a hand-shake. When it goes to litigation (and they always seem to end up in litigation), were the few hundred of savings in attorney costs to review and/or draft the contract really worth it when you’re now looking at tens of thousands of dollars in legal fees?