When drafting a New York business agreement, it’s imperative that you do so with the assistance of an experienced New York business law attorney. Otherwise, you run the risk of making mistakes that can cause headaches for years to come. Luckily, most New York business agreement mistakes are easily avoidable—you just need to know what to look out for. Below are some common New York business agreement mistakes.
Failing to get it in writing
First and foremost, every New York business agreement must be in writing. Although this may seem obvious, there are many people who make verbal agreements regarding business matters. This is a huge mistake. Proving the existence of a verbal agreement in court is virtually impossible, so be sure to always get it in writing.
Failing to include a governing law clause
Unless all parties to the agreement are in the same state and all contractual provisions will be fulfilled in the same state, the agreement should contain a governing law clause. In the case of a New York business agreement, the governing law clause should state that the laws of New York shall govern the agreement.
Agreeing to arbitration
Many contracts contain an arbitration clause. Arbitration is expensive, and it limits the rights of parties to an agreement. There are very few situations in which an arbitration clause is beneficial to a small business or small business owner.
Failing to obtain a final copy of the agreement
Parties sometimes sign and submit a business agreement to the other party for signature without obtaining a copy of the final agreement. This is a big mistake. It is imperative that both parties to a business agreement obtain a final copy of the agreement. Without a signed copy of the agreement, it can be difficult for a party to prove that a fully executed version exists—this makes it unlikely that a court will enforce the terms of the agreement.
Also, many agreements reference exhibits or attachments. Therefore, in addition to obtaining a copy of an agreement that is signed by both parties, it is important to ensure that the final version includes all cited exhibits and attachments. Exhibit and attachments often contain important information. However, the court won’t enforce them unless a party is able to produce them for review.
Contact a New York Business Law Attorney
The best way to avoid common New York business agreement mistakes is to enlist the help of an experienced and knowledgeable New York business law attorney. At the Law Office of Angela Siegel, we are available to assist you with all of your New York business law needs. We are experienced in all facets of New York business law, including business formation, contracts, dispute resolution, and real estate. Please contact us today to schedule a free consultation with our New York business law attorney.