What does a Contract Lawyer do?

Have you ever wondered what a contract lawyer does?

A Contract Lawyer drafts and reviews contracts In a nutshell, contract lawyers, draft contracts for their clients, review contracts for their clients and provide advice about contracts. We have set out on our website some information on the importance of having an experienced lawyer draft your contract and how we go about reviewing contracts. Contract lawyers also negotiate contracts and often (but not always) deal with contractual disputes. Sometimes contract lawyers don’t deal with disputes because they refer the dispute on to Alternative Dispute Resolution lawyers, or lawyers that specialise in Litigation (i.e. going to court to resolve a commercial dispute). Those are the basics of what a contract lawyer does.

So what? How should a contract lawyer provide their service?

Ok so you understand that we draft and review contracts and provide advice about contracts. But is that the end of the story? We don’t think so. Why? Well here’s a quick question for you, do clients really care about what the law says, or what the correct interpretation of a contract is? Well in part they do, but to us, and more fundamentally, clients care about the legal answer or legal expertise as it relates to their contract situation. In other words the legal advice has to be tailored to be of assistance to the client.

What should a contract lawyer provide?

This to us is where many lawyers let themselves down, they could tailor their advice and provide clear paths forward (based on what the relevant law is, what the lawyer knows about the client, the client’s business and industry and based on what the client is looking to achieve). However so few lawyers do this. Some will have an each way bet.

So if you are a lawyer, man up, and get off the fence. That’s what clients want from you. A firm view. Sure we all know that the law can be vague and for any matter to get to the High Court there have been competing views and judgments and dissenting judgments flying around, but to us this is what lawyers are getting paid for. To use their legal skills and their experience to make a call and to get off the fence! Could you be wrong? Sure. Because as we have said, for any matter to get to the High Court there have to be a number of judges that do not agree with a point of view. But as lawyers that’s what we are getting paid for. So let’s have a look at how lawyers give advice about contracts.

Some lawyers just give legal advice, i.e. ‘the contract says blah, blah and blah, so these are you contractual obligations, a, b and c’. ‘By the way good luck working out what you want to do.’ For a client this does not provide clear instructions. A step up are lawyers that provide legal advice and then give their clients suggested ways forward such as list of options and nothing more, i.e. you could do 1, 2 or 3. This to us is more helpful because at least the lawyer is suggesting a way to deal with or resolve the issue and means that the lawyer has used some critical thinking based on their knowledge of the law, their knowledge of the client’s business/circumstances and their knowledge of what the client is trying to achieve. But ultimately I think you would still want your lawyer to take the next step and put himself in your shoes and give you a preferred option.

Still fewer lawyers will say ‘based on my knowledge of the law, my commercial experience, my knowledge of your business and what you are trying to achieve, this is what you should do and here are a few ways of achieving that outcome. Further this is what I have done, (or could do if you engage us) to help you get that outcome’. This is the ultimate legal advice and legal assistance you should be after. Why? Well because in these circumstances the lawyer is basically bringing all their training and experience to bear to not only suggest a preferred route but also make that happen for you. In short taking care of your problem, reducing your stress and giving you peace of mind.

Looking for a contract lawyer? Call us on 0466 653 166  or fill in the form below to send us your enquiry.

7 Reasons You Should Hire a Contract Lawyer

You’ve survived this far without a contract lawyer, so why would you need to hire a contract lawyer now? We’ve got seven reasons for you:

Reason 1: Save Hours of Employee Time – And Get Better Results

We’re the first to admit that contracts can be complicated, especially if you’re not used to dealing with them. Checking over your contracts and making changes yourself might feel like the cheap option, but the amount of time it takes you or your employees to understand and edit a contract is a waste. Especially when you also consider that they may not make those correctly.

A specialist contract lawyer will not only look over your contracts far quicker, but you’ll have the added assurance that a trained professional has considered every angle.

Reason 2: Get Specialist Experience

When you’ve got an important contract on the horizon you need more than just an interested generalist; you need an expert. A contract lawyer can ensure that the vital contract – whether it’s a franchise agreement, partnership agreement, or anything else – is drafted and negotiated correctly and in a way that benefits your business. Who better to do that than someone that has done it thousands (literally) of times before.

Reason 3: Prevent Contract Problems Before They Happen

There are only two ways you can find out you have a problem with a contract: before it happens and after. If it’s the latter, the damage has already been done.

Many businesses have bad contracts that are “dormant” – they haven’t caused a problem yet, but they have the potential to. Don’t fall into the trap of waiting to see if a problem will crop up; this habit will cost your business time and money over the long term. Instead, get a contract lawyer to review all your contracts and put a stop to problems before they cause you problems.

Reason 4: Receive Help Negotiating

A contract lawyer can help your business negotiate your contracts effectively, getting the best deal for you and your business. They will help you spot which terms can hurt your business and suggest ways the contract can be improved to best benefit your business.

Reason 5: Ensure Your Contracts Are Legally Binding

Your contracts can’t protect your business if they’re written improperly. Worst case scenario, a contract may not be legally binding, leaving you with no recourse if the other party reneges on their end of the deal. In other words what’s the point of going to all that effort to put in place a contract only to find out it’s not worth the paper it’s printed on. Hire a contract lawyer and you will prevent this from happening.

Reason 6: Increase Your Likelihood of Winning Tenders

Your statement of compliance is a key document when bidding for a tender, setting out how you intend to amend the other party’s original contract. Formulating this document is a careful balancing act between getting a good deal and coming across as a business that will be too difficult to deal with. When you hire a contract lawyer, he or she help you tread that line and get the best deal possible for your business.

Reason 7: The Other Party Also Has a Contract Lawyer

You can bet that in any serious business negotiation the other party has a contract lawyer working on their side. Without your own contract lawyer, your business is at a distinct disadvantage and is likely to come off worse in any negotiation.

Don’t have a contract lawyer yet? We can help – even if you’re in a hurry. Contact our team today to find out more.

4 Things You Should Know About Contract Laws in Australia

Australian contract laws are complex and can be unforgiving. Here are four key things you need to know that could shed some light on Australian contract laws:

1: A Contract Requires Four Key Elements

Under Australian law, a contract needs to contain the following four distinct elements to be valid and binding:

• Offer – A clearly stated offer from one organisation (or person) to another organisation or person.
• Acceptance – The offer must be clearly accepted by the recipient of the offer, and it should be clear what they are accepting (ie the terms of the contract). If one side makes a counteroffer through negotiation that does not constitute acceptance.
• Consideration – A contract involves the parties exchanging an item of value (the consideration). This could be money, resources, time, or other commitments.
• Intention – The contract should make it clear that the two parties intend to enter into a legally-binding agreement.

You only have a contract if all four of these elements are included!

2: Your Contract May Be Invalid If The Other Party Is Unsuitable

When you enter into another contract with another party, it is your responsibility to check who they are and whether they are suitable. If it later turns out that the business you’re dealing with is bankrupt, or the individual is untrustworthy, your contract might be worth less than the paper it’s written on.

For example, a bankrupt business may not be able to enter into a legal contract with you, nor would a 17 year old be able to enter into a contract. For this reason, it is essential that you do your due diligence. Who is the other party? Are they capable and suitable for the contract you are entering into?

This may not sound like a big deal, but think about how may minors under 18 use websites (like Facebook, Twitter, WhatsApp etc) and the website purports to bind the minor to their website terms and conditions. They could be in for a rude shock if the relevant website tried to enforce those contract terms. 

3: Most Contracts Don’t Have To Be In Writing (But They Should Be)

A contract doesn’t need to be in writing to be legal; in most scenarios, a verbal contract is also legally binding. There are a few exceptions: credit contracts, contracts concerning land, and unsolicited consumer agreements, among others – but these are the exceptions rather than the rule.

However, that does not mean you should rely on verbal agreements. An oral contract is much harder to prove (unless recorded) as there is no definitive version to go back to – it’s your word against theirs.

If the other party is not willing to sign a written contract, this is a clear warning sign that they may be considering backing out of the agreement (or want to keep the option to do so later). Don’t let this slide: a written contract is the only way both parties can ensure there is a clear agreement with no room for misunderstanding.

4: Small Businesses Have Some Protection From Unfair Contracts

In 2016, the law changed to help protect small businesses (those with fewer than 20 employees) when entering into standard form contracts (a contract that is offered as-is and cannot be negotiated or changed) up to the value of $300,000, or $1,000,000 for longer contracts (12 months plus).

In the past, larger businesses have used this practice to enter into unfair agreements with smaller businesses. These contracts can sometimes include terms that cause harm to the small business or that are completely unnecessary.

Under the new law, a court can find a term unfair and force it to be removed from the contract (the rest of the contract is still valid).

Instant Relief from Contract Stress with Online Contract Reviews.

We work with contracts all day, every day. We’re experts at drafting, reviewing, amending and negotiating business contracts. If you’ve got a business contract, you need help with, please contact our team today.

How To Choose The Right Contract Lawyer For Your Business

As your business expands, you’ll find yourself dealing with more and more contracts: employment contracts, NDAs, non-competes; not to mention agreements with suppliers, clients, and vendors. Negotiating and preparing these documents effectively without specialist legal advice is inadvisable and puts your business at a significant disadvantage.

These legally-binding contracts should protect and benefit your business, but without the right advice they may do the opposite. A contract lawyer ensures that your contracts don’t just look good on paper but are also effective should they need to be enforced.

Your choice isn’t if you should hire a contract lawyer, but which one you should choose. Let’s delve deeper:

3 Points To Consider When Hiring a Contract Lawyer

1. Contractor vs. In-House

Businesses with a high volume of contracts must choose between hiring an in-house lawyer (or team) and partnering up with another business. In most cases, engaging with a specialist contract company is going to be more cost-efficient than hiring staff. This will always be the case for smaller businesses.

A specialist partner will scale the service they offer to meet your demand, so you only pay for what you use. This can be achieved either through an hourly rate (good) or fixed prices for specific projects (better). A contract company may also have access to a wider range of lawyers with different specialties, which means you receive a better service.

An in-house team does make sense when you are dealing with an incredibly-specialised area of contract law and want to train up and retain your specialists, but in most cases, you’ll be better off partnering with a team like Online Contract Reviews.

2. Referrals and Reviews

Online reviews offer a great indicator of the value and expertise of the company or lawyer you will work with. Check the testimonials on their website and double-check for negative reviews on Google and Facebook.

The only thing that is better than online reviews are personal referrals. Check with others in your industry to find out their experience with other lawyers and ask for recommendations. If you can’t get a recommendation from someone, ask your prospective lawyer to provide a reference that you can follow-up on.

3. The Value of Specialist Experience

Contract law is a specialist area, but the rabbit hole goes a lot deeper than that! A contract lawyer with specialist experience in your industry or in the type of contract you require is going to be a better hire for your business than a generalist.

At Think Contract reviews we have built up a reputation in several specialist areas, including:

• Commonwealth Contracts – We have experience working with contracts both for and against the Commonwealth of Australia, including the Department of Finance, the Department of Defense, the Department of Home Affairs, and several large private sector suppliers.
• IT Projects – We’ve been engaged in IT projects worth hundreds of millions of dollars, many of which involved the Commonwealth and their suppliers.
• Distressed Contracts – Contracts that are either not fit for purpose or that one party is no longer honouring. We specialize in determining the reason for the problem and offering a way to resolve the issue.

Do you need a contract specialist? Contact Online Contract Reviews today, and we’ll get in touch with a fixed price quote.

Contract Breaches

Common Contract Breaches

A contract is formed when parties reach an agreement and terms, either in writing or verbally, and commit to form that legal relationship and pay a consideration.

Once the contract is formed mostly things progress smoothly until a dispute arises or a person or party breaches the contract.

There are different types of breaches and may can be sorted out amicably between the parties. However, when this cannot be done you may need to obtain legal advice to assist in resolving the dispute or to seek damages or enforce the contract.

Mostly breaches by one party occurs for the various reasons, including:

• Does not perform in the prescribed time in the contract;
• Does not perform their duties as stated in terms of the contract; or
• Fails to perform their duties.

There are different categories of contract breaches:

Minor Breach

This is also referred to as a partial breach and is where the terms of the agreement have only been partly satisfied or delivered on. In most instances the parties would try to make good or fix the remedy and many disputes where they have suffered a financial loss due to the breach. If the party has not fulfilled their obligation then they would claim the loss from the other side.

An example of a minor breach would be where some defective work is done on a building project or where a supplier of goods has not supplied all the goods or there are missing parts from the delivery.

Remedies for minor breaches would be for the other party to agree to fix the issue. This could extend to financial compensation if a party has suffered financial loss due to the contact breach.

Material Breach

A material breach is more significant and to be a material breach there has to be a key element of the contract that hasn’t been delivered or performed. As a consequence, one party is deprived of the benefit of the contract. The breach must cause a significant or serious effect on the benefit that one party would receive.

If a material breach has occurred you could seek a variety of remedies or make good options to settle the dispute. This is a more significant type of breach and a party may be able to terminate the contract due to the breach. Again, if financial loss is incurred, as it most certainly would have, the other party could seek compensation and damages for their loss.

Anticipatory Breach

An anticipatory breach is a breach that has not yet occurred, but where one party has notified the other that they won’t fulfil their obligations under the contract. It may also be where one party does not intend or be able to fulfil their obligations under the contract.

Actual Breach of Contract

An actual breach of contract is where the breach has occurred where one party has not performed their part of the contract. This could be where goods are not delivered or unsatisfactory work being performed.

What remedies are there for contract breaches?

You may wish firstly to end the contract and stop losses from occurring.

Dispute Resolution

Some consumer law based contracts such as building contracts have prescribed procedures to resolve disputes between the parties. Other business contracts do not so other methods have to be used.

Terminating a contract

A contract can be terminated due to breaches, being discharged or repudiation. To terminate a contract is not always simple and the correct procedure should be followed to ensure that you as the aggrieved party does not become liable for losses or claims from the other party.

Specific Performance

Specific performance is where a court order is sought to make a party to complete part of all of a contract. This can be sought urgently through a court process and is used in circumstances where a there is more benefit to a Plaintiff in making sure the contract is performed, rather than simply ending it (which is usually another option) on the basis of the breach.

Renegotiating the Terms of the Contract

The parties may agree to amend the terms of the contract through negotiation to satisfy all the parties. This can be done without going to court. This may help to retain the relationship between all the parties where the commercial arrangement can continue to benefit all the parties.

Damages

If you are seeking damages you will need to be able to ascertain your loss. This process is generally more litigious but may not end up in court and can be settled early through correspondence and mediation.

Strategies to Resolve Contract Disputes and Breaches

If you are involved in a dispute there are many ways that a contract lawyer can assist you in resolving the contract breach dispute.

There are different types of strategies that can be employed to resolve the contract dispute in a commercially minded way.

Typically, people who enter into a contract want the arrangement to work and to the benefit of both parties. So, you may want or be required to continue the relationship.

Having a lawyer who understands the commercial realities as well as the legal side can help you resolve the matter that will ultimately benefit you as our client.

Others may seek to terminate the contract and seek damages. This may not be possible for all contract breaches and we will advise you so that you can make the best commercial decision.

Whatever your desired outcome is, we will work towards it.  Mostly disputes can be resolved quickly and with proper legal representation this process will happen faster.

We provide our clients with concise advice and work effectively to get the best result for our clients in fastest time frame.

Contact us to speak to a contract lawyer today about your query on 0466 653 166 or complete an online enquiry form and we will get back to you promptly.