How Can a Contract Lawyer Help Small Businesses or Startups in Ontario?

Contract Law and Contract Disputes

When running a business, you’ll be dealing with different types of contracts and agreements which are crucial to protect your interests. Contracts describe with clarity the nature of every business transaction. It defines the rights, responsibilities and obligations of the parties involved and specifies the terms and conditions that each party is legally bound to.

For instance, if your business is a partnership that provides acupuncture services, you may need a supply of herbal medicine and supplements, and so you find suppliers and sign contracts for the purchase and delivery of the goods in exchange for payment. Your business and vendor relationship can be considered a form of contracting with a partnership, and you (and your business partner) will need to enter into a formal contract with the supplier which will set the boundaries and limits of how goods and services are supplied. The contract explains the terms and scope of the services provided, which can include particulars such as quantity and quality specifications, pricing details, delivery schedule, payment requirements, warranties or guarantees and other relevant information.

In the event the vendor doesn’t live up to the terms of the contract, you can take legal action and use it to prove your case in court. However, if not drafted properly, contracts can be met with ambiguities and disputes and may be deemed unenforceable in court. 

It could also go the other way around, for instance if you fail to pay the vendor,  the other party may accuse you of breach of contract and may seek damages.  A contract law breach could lead to numerous penalties depending on the scope of the violation. 

There are so many types of contracts a business can likely enter into as it grows and continually deals with different transactions. It’s necessary to seek professional help in drafting ironclad contracts that will provide the highest level of protection against disputes and breaches. If you write the contract on your own, you risk omitting significant clauses in contract law that are essential in the context of Ontario’s legal and regulatory framework, which could make the agreement vulnerable to legal challenges. 

A skilled contract attorney or agreements lawyer understands the intricacies of Canadian contract law and can write business deals that are free from potential loopholes that can fully protect your company against courtroom challenges.

How Can a Contract Lawyer Be Helpful?

A business contract lawyer can be very invaluable to new businesses navigating the legal complexities of contract law in Canada. They specialise in creating and managing legally-binding and non-ambiguous contracts and agreements that will protect the business from common legal challenges. A contract lawyer can also review litigation cases and advocate for your rights if the business is accused of breaching a contract. 

Here are several ways contract lawyers can help:

Draft and Modify Contracts

For a  contract to stand within the court of law, it must be legally valid and binding. A skilled contract agreement lawyer in Ontario can help you create clear and enforceable contracts that meet all the basic legal requirements to be upheld in court.

For example, if your real estate company needs to formalise the transaction process for the sale of property, a contract lawyer can help you draft and review an Agreement of Purchase and Sale in Ontario. Your lawyer will ensure that it includes all key components (purchase price, parties involved, payment terms, property description, closing date, etc.) and is structured within the context of Ontario’s legal framework to avoid future legal issues. 

Review Hidden Risks 

Signing contracts can become a routine part of running a business that busy entrepreneurs often add their signatures without fully understanding the terms. This can lead to significant risks and consequences particularly when salient details are overlooked. One vital responsibility a contract lawyer does is to review contracts to make sure there are no unfavourable conditions and every detail is compliant with Ontario law. 

An employment contract lawyer, for example, can help review your company’s existing employment agreements for potential frustration of contract law issues. Your attorney can make revisions to the agreement with the addition of necessary clauses and protections, such as force majeure clauses or temporary suspension clauses, to address unforeseen events and cover the risks of frustration properly to avoid unnecessary legal complications.

Dispute Resolution and Legal Representation

New businesses and startups can be especially vulnerable to contractual disputes, but contract attorneys are very competent at resolving conflicts to help companies avoid costly legal battles.

They can assist in dispute resolution in several ways: 

• Negotiate settlements – A contract lawyer can be extremely beneficial in helping to find a compromise for a breach of contract  in a commercial lease agreement, for example. They can offer rent reductions or deferrals as a solution, or a repair and maintenance agreement which entails modifying the existing lease agreement to help avoid further disputes. 
• Mediation – In a lease to own rental agreement, for example, contract lawyers can help resolve conflicts arising from contract law privity issues by acting as a neutral third party mediator to facilitate discussions and help clarify respective rights and obligations.
• Litigation – If mediation does not resolve contractual issues, a lawyer can advise legal recourse to enforce the terms of a contract or claim damages for breach of contract.

Avoid Common Contract Mistakes

Business contract mistakes can have long-term consequences that can affect your reputation, financial stability, operations and relationships with clients, employees and suppliers. Contracts establish a solid foundation on how you run and manage your business. They outline provisions, expectations, rights and responsibilities for all parties involved.  A contract lawyer can help you avoid issues such as unclear terms, vague definitions, complex words, general statements and generic templates that can lead to legal challenges. 

You can try and reference an employment contract template in Ontario as a helpful guide when drafting your own contract, but you may leave out specific requirements that align with Ontario’s legal frameworks that can make it enforceable in court. Hiring an attorney for a custom contract can ensure that specific contract law clauses are included to comply with applicable provincial and federal laws.

A non-competition clause in Ontario, for example, can be used in independent contractor agreements to protect the use of sensitive business information, trade secrets or key client relationships after the contract ends.

As a further example, a skilled contract lawyer will make sure to add an entire agreement provision in a commercial lease contract to provide clarity and reduce the risk of misunderstandings when any changes or additions to the lease are made.

Find a contract lawyer near me

Hiring an agreements lawyer or contract lawyer can be a significant investment for a growing business, but it’s a necessity that safeguards your company from disputes, financial losses and legal risks in the long run. With a strong foundation of expert legal support, you have peace of mind to focus on running your business and the confidence to bring it to the next level without the worry of legal conflicts. 

Contact our team at Bridging Legal Solutions now and get help for drafting legally-binding contracts that will protect your business for years to come.