3 Reasons to Hire a Litigation Attorney for Vendor Contracts
Do you intend to start a business that involves stocking the store with merchandise from several vendors? Since you are relying on vendors to keep your store stocked, you must also consider the legal aspects of the business arrangement. The reason is that if a dispute arises between you and one of your vendors, it can lead to your store experiencing a financial loss due to there being less inventory to sell. Before signing contracts with vendors, hire a litigation attorney to ensure that you are legally protected when you open the doors to your business. An attorney will not only be handy during the initial stages of your business venture, but also throughout the years to come.
1. Understand What Is Written in Contracts from Vendors
When you find vendors to supply your inventory, it will involve contracts being signed. Do not sign a contract unless you fully understand what you are legally agreeing to. The best way to gain understanding is to speak to a litigation attorney and hire him or her to review each contract that you receive. An attorney will not only discuss the legal terms that are written in fine print, but will also make sure you understand the things that you think you understand. For example, you might think the vendors mean one thing in the contract, but legally what is written could mean something completely different.
2. Take Prompt Legal Action if a Dispute Arises
Handling a dispute with a vendor the wrong way can be detrimental to your business. The goal should be to settle the dispute in the fastest and most cordial manner possible so your inventory will not be affected on a long-term basis. For example, if a vendor fails to abide by the contract and deliver your inventory by a specific date, you need to discuss the situation firmly but without aggression so that the vendor will deliver your inventory. An attorney can help you draft up a legal document discussing your concern, the money you are owed due to not receiving the shipment, and how you want to settle the dispute.
3. Protect Your Business Reputation
Your business reputation can be ruined if you get into numerous conflicts with vendors. A commercial litigation attorney can help you maintain a good reputation by handling conflicts on your behalf and trying to keep the disputes out of the public eye. For example, rather than making disputes public records by going to court, an attorney will try to protect your reputation by speaking to vendors via mediation.