Why ‘DIY’ Business Contracts Are Hazardous


If you’re a business owner, you may be tempted to draw up your company’s contracts on your own for a few reasons: It doesn’t take as long, it doesn’t cost as much, and it doesn’t require a lawyer getting involved in your carefully cultivated relationships with clients.

You might actually share in these reasons or have more of your own, but as good as any reason may seem to forgo an attorney’s help, none are good at all. You should never try to take a “do-it-yourself” approach with your company’s legal agreements for reasons we’ll address below.

DIY Contracts Present Huge Liability Risks

If you try to plug information into a contract template you found online – or worse, try to write one on your own – you can expose your company to a nearly endless potential for liability. The reason for this is simple: Language is crucial in a legal document. All of that lawyer jargon’s purpose is to limit ambiguity in what’s being stated or promised, which determines how parties are liable to each other. If the language in a contract doesn’t sufficiently cover one party, the other could use it against them, so to speak.

DIY Contracts Can Cost ‘More’ If They Result in Litigation

A professionally written contract is far from immune from a dispute, but as we alluded to in the previous section, a DIY contract can end up at the center of a lawsuit more easily. Contract disputes that end up in court are costly to fight. What a business owner saved in writing a contract on his or her own can lead to far greater costs in court and attorney’s fees – not to mention if any damages were ordered.

The Contract May Be Unenforceable

A contract written by someone who doesn’t fully understand how one works can be entirely unenforceable in a dispute. Lawyers invest a lot of time in their early education in learning about elements that go into creating a valid contract.

These are details too fine to fully explain here, but they go far beyond an offer and acceptance of that offer. Should a contract lack any element that would otherwise make it a valid legal agreement, a court could render it unenforceable to the detriment of either or both parties involved.

Do You Need Assistance with Your Business Contracts?

If you are a business owner who’s thought about writing your own business contracts, don’t be misled into believing this is something you should handle on your own. Even the most savvy and successful business owners can run into severe liability risks when they try to prepare a contract on their own.

Get the legal help you need by reaching out to A. Singer & Associates, Inc. We can help you draft, review, and negotiate your business contracts so that you can feel more confident about your company’s security.

Reach out to A. Singer & Associates, Inc. today for help by calling (805) 919-8589 or by contacting us online.

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