Contracts are essential business documents that define relationships and expectations between parties. In Michigan, entities enter into diverse contractual relationships in order to secure workers, find vendors, and supply purchasers with their goods and services. Contracts dictate how parties will do business. They should also dictate what happens if the parties breach their agreements.
This post will examine the importance of remedies’ provisions in contracts. Readers are reminded that no part of this post should be relied on as legal advice. All business owners should consult with their own attorneys about how to draft contracts that protect their specific interests.
Tailoring contractual provisions to businesses’ needs
Through contracts, businesses can establish their relationships with other parties. A business can decide when they want to perform or accept receipt of products. They can decide how much they will charge or pay for goods or services. They can establish where contractual obligations will be met and which representatives of the contracting businesses can make decisions about their agreements.
To this end, contracts can be tailored to the needs of individual businesses. This is particularly true when it comes to remedies’ provisions. Remedies refer to the options for relief harmed businesses have when their contracts are breached. Remedies can involve financial compensation, performance of specific contractual terms, or release of the parties from their agreement.
What remedies should a business secure?
The type of remedy that a business should secure will depend on what its objectives are. For example, a business that needs a specific product that is only produced by one company may want their remedies provisions to include the specific performance of the delivery of the product from the company so that its operations can continue. A business that can get a similar suitable product from another vendor may want their contract to let them out of their agreement in the event of a breach so that they can pursue other options.
Contracts are important and should be relationship-specific. Business law attorneys can help their clients prepare contracts that makes sense for their business objectives. That includes the development and inclusion of remedies’ provisions that meet businesses’ needs.