The document discusses key issues that contracts need to address to be legally binding. It notes that contracts create the framework for business relationships but poorly written contracts can leave parties exposed legally and financially. The document then lists 9 questions for reviewing contracts to ensure they are enforceable, including whether the contract is fair, involved any misrepresentation or coercion during negotiations, contains errors, is possible to enforce given changing circumstances, all parties understand the terms, involved any failure to disclose important information, subjected any parties to undue pressure to sign, or requires breaching public policy.

1. Nine Issues Your Contracts Needs to Address
In the business world, contractsmake upthe bedrock of nearly all business relationships, whetherthose
are withvendors, partners, customers, oremployees. Contractscreate aframework withinwhichthe
relationship willfunction. They governs these relationships, andprovidethe necessary legal andother
protections forall partiesthatbusiness requires. A contractthatis well writtencanhelparelationship
prosper. Itcan alsopreventthe needforlitigationorevenhelpabusiness wininasituation where dis-
putesdoendup goingto court.
But whathappens whenacontract isunethically orinaccurately written?While abad, or poorly written
contract cannot provide ahealthy framework forabusiness relationship, italsoleavesthe parties in-
volvedexposed bothlegally andfinancially inthe eventuality of adispute. Suchcontractsmaybe
deemed unenforceableinacourt of law. Therefore, the prudentbusinessperson considers hisorher
contracts and ensures they are legally bindinginall circumstances.
As youreview yourowncontractsand negotiation process, here’saquick listof questions tokeepin
mind:
• Is the contract fair? – If there are terms anywhere in the contract that a judge may
construe as grossly unfair, they can determine it unenforceable. Any time one party
has a considerable advantage in a contract, a judge may indeed be likely to find it
unconscionable, which voids the contract.
• Was there any misrepresentation? – Any misrepresentation during the negotiation pro-
cess can result in a judge declaring a contract invalid.
• Was there coercionor duressinvolvedinthe negotiationprocess?– Though it may seem
quite ethically clear, determining coercion or duress in a courtroom can be complex
and can result in the invalidation of the contract. Shrewd businessperson ask if their
business is doing everything it can to protect itself from having such claims brought
against it.
• Is the contract error free?– It may seem like a small thing, but even unintentional er-
rors could have meaningful impact on the enforceability of the contract in a court of
law. This is true for both parties, so to protect yourself, carefully review the entire
contract to ensure it is error free.
• Is the contract evenpossible toenforce?– Events may take place or circumstances may
change that make it impossible for one or both parties to fulfill the terms of the con-
tract. This would legally render it unenforceable as well. Common examples of this
are natural disasters.
• Do all parties have the capacity to understand the terms of the contract? – If it becomes
clear that one or more parties involved does not understand what they are agreeing
to, the contract can be found invalid due to a lack of capacity. This could be the
mental capacity of one or more parties, or simply their inability to understand the ac-
tual language of the contract.
• Was there a failure to disclose?– If any parties to a contract withhold important infor-
mation that is determined as misrepresentation in a court, the judge can use this as
grounds to nullify the contract.
• Were any parties influencedorpressuredintosigningthe contract? – If a judge determines
that one side was pressured into signing a contract, they can and will invalidate the
contract. Examples of this are threats to a person’s livelihood or reputation.

2. • Were there any breaches of public policy?– If any part of the contract requires either
party to behave in any manner that is illegal to full its terms, or if they are required
to forfeit any legally guaranteed rights, the contract cannot legally be enforced.