Reading time: 3 minutes

The question should be: When do you not need a lawyer for business contracts?

Okay, maybe you don’t need one when you’re simply buying a product or acquiring some services, but if you are entering into a business contract that has serious ramifications for any breaches or failure to perform, you should seek assistance from a business lawyer.

If you are the party that is preparing the contract, you should have a lawyer assist you to ensure that all the important clauses are included in the drafting of the contract.

If you are the party that is receiving the contract, it may be even more vital to have a lawyer assist you. Your lawyer will be able to thoroughly review the contract and explain your rights and obligations under the contract. If there are any parts that you are uncomfortable with, this must be negotiated prior to the signing of the contract. Once a contract is signed, renegotiating the terms or trying to get out of the contract is not impossible, but could be very difficult and costly.

So which contracts should be reviewed by a lawyer?

Below are 3 of the most common business contracts that a small or medium sized business may encounter which should definitely be drafted or reviewed with the assistance of a good business lawyer.

1. Sale of business contracts

Regardless of whether you are the seller or the buyer of a business, you should definitely consult with a lawyer. If you are the seller, you need to ensure that all future liabilities of the business are properly transferred to the purchaser. If you are the purchaser, you need to make sure that the contract clearly sets out what you will and will not receive for the purchase price. In a sale of business, sellers and purchasers cannot rely merely on verbal agreements. The sale of business contract is the final agreement between the parties.

2. Employment contracts

As a business owner, employees are one of your greatest assets. It is important that the employment contract is fair and that your employees are aware of their entitlements under the Fair Work Act. However, it is also important to protect your other assets. Employment contracts should have clauses covering intellectual property so that anything the employee creates or designs in the course of employment remains with you, and also confidential information to ensure that employees do not divulge information that is confidential to your business e.g. supplier and client information, to the general public as it may cause significant damage to your business.

3. Shareholders agreements

The contract you have with your business partners is one of the most important contracts that your business will enter into. Shareholders agreements need to clearly set out the rights and obligations of each shareholder, their duties to the company, and what actions require unanimous, or at least, majority approval. The shareholders agreement also needs to have a proper dispute resolution procedure. The last thing you need when you have a dispute is another dispute about how to resolve the dispute. This is a waste of time and money for all parties involved, and diverts your attention from the operations of the business.

As stated previously, you probably do not need a lawyer when you are purchasing an item online or simply requesting some hairdressing or cleaning services. However, wherever there is a contract that has significant consequences for your business, you should have it reviewed by a lawyer. Being stuck in a contract which is detrimental to your business could cause significant monetary and reputation losses to your business.

Webinars

Redundancies and Restructuring: Understanding Your Employer Obligations

Thursday 7 July | 11:00 - 11:45am

Online
If you plan on making a role redundant, it is crucial that you understand your employer obligations. Our free webinar will explain.
Register Now

How to Sponsor Foreign Workers For Your Tech Business

Wednesday 13 July | 11:00 - 11:45am

Online
Need web3 talent for your tech business? Consider sponsoring workers from overseas. Join our free webinar to learn more.
Register Now

Advertising 101: Social Media, Influencers and the Law

Thursday 21 July | 11:00 - 11:45am

Online
Learn how to promote your business on social media without breaking the law. Register for our free webinar today.
Register Now

Structuring for Certainty in Uncertain Times

Tuesday 26 July | 12:00 - 12:45pm

Online
Learn how to structure to weather storm and ensure you can take advantage of the “green shoots” opportunities arising on the other side of a recession.
Register Now

Playing for the Prize: How to Run Trade Promotions

Thursday 28 July | 11:00 - 11:45am

Online
Running a promotion with a prize? Your business has specific trade promotion obligations. Join our free webinar to learn more.
Register Now

Web3 Essentials: Understanding SAFT Agreements

Tuesday 2 August | 11:00 - 11:45am

Online
Learn how SAFT Agreements can help your Web3 business when raising capital. Register today for our free webinar.
Register Now

Understanding Your Annual Franchise Update Obligations

Wednesday 3 August | 11:00 - 11:45am

Online
Franchisors must meet annual reporting obligations each October. Understand your legal requirements by registering for our free webinar today.
Register Now

Legal Essentials for Product Manufacturers

Thursday 11 August | 11:00 - 11:45am

Online
As a product manufacturer, do you know your legal obligations if there is a product recall? Join our free webinar to learn more.
Register Now

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Need Legal Help? Submit an Enquiry

If you would like to get in touch with our team and learn more about how our membership can help your business, fill out the form below.

Our Awards

  • 2020 Innovation Award 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Award 2020 Employer of Choice Winner – Australasian Lawyer
  • 2020 Financial Times Award 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year Award 2021 Law Firm of the Year - Australasian Law Awards
  • 2022 Law Firm of the Year Winner 2022 Law Firm of the Year - Australasian Law Awards