Business law basics: are you covered?

Solid legal foundations are essential for business success. Whether you’re starting, growing or exiting a company, it’s a good idea to check that you’ve covered all the basics – especially if there’s been a recent change in regulations or your activities.

Attwaters has been providing common sense legal advice to local businesses and their owners for more than 100 years – read more here. In this blog, we look at some of the common challenges facing our clients – and how to tackle them.

Are our trading terms strong enough?

Many companies use generic contracts when they start out but these can leave you and your revenue exposed. Key elements, such as liabilities, deliverables and unforeseen events, are rarely covered sufficiently in generic contracts.

As your business grows and evolves, it’s important to ensure that contract wording is tailored to your unique needs and risks. Inadequate or inappropriate terms and conditions could impact your company’s cashflow and reputation. 

A quick health check can help identify any gaps in your business contracts. You can get a head start with this checklist prepared by the Business Law specialists at Attwaters.

How can I keep our business contracts up to date?

The pace of business change is getting faster – and it’s hard to ensure your contracts keep up. Outdated commercial contracts might not offer sufficient protection or even be enforceable, which could cost you time and money.

Whatever the age or stage of your business, it’s wise to regularly review your contracts to ensure the terms remain robust and relevant. You might also want to consider establishing a formal process and owner for managing and communicating contract updates. This is particularly important if contract templates have been shared with different teams and stakeholders across your business.

Without the right oversight, both contract quality and consistency could suffer – along with company profits. Our friendly lawyers can help you get your contracts back on track, so you can focus on driving your business forward. 

How can I de-risk an upcoming commercial transaction?

Running a business is hard enough. Add a major commercial transaction into the mix, and things can easily fall through the cracks leading to added risk and complexity. For owner-managed businesses, the stakes are often even higher with personal assets on the line.

Whether you’re entering a commercial tender process, evaluating outsourcing options, negotiating contract terms with a major new customer, embarking on a joint venture or looking to appoint (or become) a distributor, timely and trusted legal advice can make the difference between success and failure.

If you’re considering embarking on a new lending or borrowing arrangement to support a commercial transaction, discussing your plans with a business lawyer will help ensure there are no hidden risks.

Why is it important to plan for the unexpected?

Natural disasters. Trade wars. Global pandemics. They can all impact your business and its ability to deliver. If your business contracts don’t allow for adverse situations, it could result in a costly contract breach or commercial dispute.

Capped liabilities, dispute resolution provisions and ‘force majeure’ clauses can all help to protect your business when things don’t go according to plan. However, these protections could prove worthless if they are not worded correctly. For example, if force majeure provisions are not broad enough, you might still be legally required to fulfil your contractual obligations even though it’s not commercially viable.

For owner-managed businesses, it’s also important to consider what might happen if you need to take a step back due to ill health. By starting succession planning early, you can reduce the risks to business continuity and your own wellbeing. Our experienced team of corporate lawyers can assist with preparing transition documents and progressing management buy-outs and business sales.

Practical legal advice for an affordable price

Our growing team of business lawyers are here for you. We are committed to providing city-quality advice at an affordable price. We make a service pledge to every client, which is founded on being transparent, responsive and professional.

Book a free 30-minute consultation with a member of our local team to find out how we can support you and your business. Contact us on 0330 221 8855 or enquiries@attwaters.co.uk.