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Changes In Contracts: What You Need To Know

Law Blog

When you go into the construction business, it is crucial that you fully understand how to properly negotiate. Dealing in real estate and construction hinges largely on the terms of a binding contract. A contract should be solid and fully lay out the responsibilities of all parties involved. However, there are times when there are holes in a contract that you may not realize, which can be detrimental. This can result in a less than ethical party to the contract to get an unfair advantage in the deal. The following are some things you must know about contracts when you are working in this particular industry:

Loopholes in Contracts

A loophole in a contract is simply areas within the document that were not fully covered, inadvertently left out, or was not included out of ignorance. If you are working alongside an unethical party to the contract, they could take advantage of these loopholes to improve his or her position in the contract. While it does not seem fair or right for one party to take advantage of another party due to an oversight in the contract, it is legal. If you are too ambiguous in the language when developing the contract, the other party is free to utilize that to his or her benefit.

Unclear Terms

Another issue in contracts are when the terms are not clearly spelled out. In some instances, a contract is not weighed evenly between all parties. This can cause one party to have more favor in the contract. If you are a contractor building a home for someone, your contract should clearly explain how often you get paid and in what intervals. So, if your contract says that you will get paid five times throughout the period of construction, it needs to include specific dates or periods of time. If your contract simply says you get paid five times, the owner can then choose when to pay you based on his or her own timetable. This can leave you in a very bad financial position. The owner could spread out the payments by months or years, leaving you with no money to live on.

Proposing Changes to a Contract

If you have a contract that you feel is not clear, you do not have to completely go back to the drawing board. There is no need to write a brand-new contract, as that will add additional time to any progress you hope to make. Instead, you can clarify the terms listed in the current contract, then propose any changes as needed. All changes will need to be made in writing.

If you feel like a contract is not clear, it is best to have your attorney check over it for you. This can potentially save you thousands of dollars in the long run. Contact a firm, like Sauro & Bergstrom, PLLC, for more help.

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14 December 2017