You can prevent a breach of contract by stating precisely what task you need from the client or contractor on the document. Contract compliance is essential in any industry. Whether you’re a client or contractor, you must give the other party terms that they can reasonably satisfy. It is one of the essential steps in reducing client risks of breaching a contract, and it’s also vital to ensuring the finished result aligns with your needs.
Preventing the Breach of Contract
If you’re wondering exactly how to prevent a breach of contract, consider the following four tips.
Make Your Contract’s Phrasing Clear
Using ambiguous language is a common mistake people make when drafting a contract is using vague language. If your phrasing is open to interpretation, the client might interpret it differently from your understanding — and your original intent. You can avoid this, and avoid contract disputes, by being as specific as possible in your phrasing. If the contract stipulates that the project be completed by the “end of the day” on a particular date, you should clarify the time and time zone. Otherwise, each party may define the phrase differently, leading to unmet expectations.
Establish Clear Expectations for Fulfillment
In addition to precise phrasing, clear expectations are essential for an effective contract. You should specify in the contact who is responsible for what task, when they will complete it, and when they will deliver it. These specifics will vary based on your industry. However, the most critical factor is ensuring that the other party can reasonably meet the expectations you establish. Don’t set a completion date, for example, that a contractor cannot reasonably complete.
Ensure That The Contract Is Legal
Another important yet commonly overlooked aspect of a contract is that it is legally compliant. Drafting an agreement with specifications that violate local or federal laws is a surefire way to have it invalidated. In some cases, this may even escalate to an EPLI issue that requires legal action. To prevent EPLI complications, you should avoid any language about a person’s demographic or physical ability. It can be a significant liability and a cause for contract failure.
Do Business With Reputable Professionals
Perhaps the most effective way to prevent a breach of contract is to ensure the other party is reputable and worthy of your trust. A good business insurance plan can help prevent issues that may arise. It isn’t easy to know how reliable another party is if you haven’t yet done business with them. Still, you can start by researching reviews, seeking information from others in your community, and asking about their professional track record. This information can help you select partners who will stand by their commitments and contracts.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
