When writing business contracts in Pennsylvania, some language may seem enforceable but can later cause problems in legal disputes. It can be helpful for the parties involved in business contracts to understand some of the typical language problems in these agreements.
Unclear terms
Unclear contract terms are hard to enforce and can cause interpretation problems. Use clear and precise language to prevent misunderstandings.
Unreasonable restrictions
Non-compete clauses without reasonable limits on time, location, or industry can become unenforceable under Pennsylvania law.
Courts in Pennsylvania need these clauses to be fair and not overly restrictive. If a non-compete agreement is too broad or harsh, the court may invalidate it, leaving the business unprotected.
Waiving legal rights
Contracts that need parties to give up specific legal rights, like the right to sue, might not be upheld in court. Make sure waivers are clear and understood by everyone involved.
Violations of public policy
Contracts that promote illegal activities break public policy and are unenforceable in Pennsylvania.
Ensuring legal soundness
When writing business contracts, focus on clarity, fairness, and following state laws. Avoid unclear terms, unreasonable restrictions, and giving up legal rights. This will make the contract stronger and reduce legal risks.
Protecting business interests
Understanding some of these details can help protect business interests and build better relationships through clear and fair contracts. It can also help business owners negotiate contracts. Focusing on clarity, and fairness reduces legal risks and fosters stronger relationships based on clear agreements.
Regular legal reviews also improve compliance and help protect against changing standards in Pennsylvania. This approach protects businesses and builds trust with partners and clients.