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Clear contracts and notarization can prevent contract disputes

For small and large Texas business owners alike, there can hardly be a bigger headache than a contract dispute. Upon signing a contract, it is assumed that both parties agree upon the terms and will make every reasonable effort to uphold them. However, as it sometimes happens, one of the parties down the line may end up breaking one or more terms of the contract, whether from a misunderstanding or a willful act of noncompliance.

Breach of contract disputes can occur between businesses and employees, partners, subcontractors or other companies with whom they do business. Simply put, whenever a contract is signed, there is the potential for a contract dispute. According to the Texas Comptroller of Public Accounts, it is in all parties' best interests to fully understand and agree upon the terms of the contract before signing, to avoid contract disputes down the line. It is possible to revise or agree upon other terms of the contract at a later time; however, business owners can reduce the risk of a disagreement by making sure everything covered in the contract is outlined in clear and easily understandable language.

Businesses can further protect themselves by having contracts notarized, states Entrepreneur magazine. In a contract dispute, all federal courts and most state courts will automatically recognize a notary signature as valid, which means that the parties who signed the contract agreed upon the terms at the time of the signing. This is especially helpful in cases where disputing parties argue that they never signed a contract.

Because contract disputes can significantly impact a company, it is often helpful to involve an attorney experienced in business law when such a dispute arises.

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