Tag Archives: Contract

Why Are Purchase Orders Important?

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The simple answer to this question is that an effective purchase order is an essential component to any successful business. Whether you are just starting your business or you are more experienced, it is important to review your purchase order to verify it is accomplishing your goals.

A purchase order is a document sent from a buyer to a supplier requesting an order. The document sets forth the type of item, the quantity and quality requested, and the agreed-upon price. It should also include shipping details and ve information. Purchase orders can range from simple one-page forms that employees can fill out to more complex orders with many details included. When the seller accepts the terms of the purchase order, a legally binding contract is formed which protects both parties.

Many entities forego using purchase orders in an effort to increase response time or because they have already established a working relationship with the vendor. However, as your business grows and relationships change, communication challenges can negatively impact your efficiency if purchase orders are not used. The purchase order is a tool that allows the parties to determine where the request went awry, fix any errors and maintain amicable business relations. For example, if a product is delivered in unsatisfactory condition, the buyer has documentation that proves what was expected and it reduces the likelihood of legal disputes arising over the issue.

If your entity is using a paper procurement process, it can create a lot of paperwork for you to maintain. You may want to consider using digital purchase orders and electronic signatures where available. This allows you to access the purchase records anywhere at any time. Having access to real-time data it an option that companies of all sizes should enjoy. However, the most important thing to remember is that however you handle it, the foundation of procurement success is the purchase order.

If you have questions about purchase orders or other business matters, we have the answers. Call us today to schedule your initial consultation. Our office is located in Melbourne, but we proudly serve individuals and businesses across the State of Florida.


What Should You Look for in a Contract?

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If you have ever tried to read a lengthy contract, you know it can be overwhelming. However, if you sign a written agreement without reading it, the law assumes that you not only read it, but that you understood it and agreed to its terms. If you are considering signing a legally binding document that you do not understand, it is important to ask questions or obtain legal assistance from a business lawyer. The term “contract” can include purchase orders, work agreements, sales documents and other similar documents.

It is also essential that you keep a copy of any contracts you sign for your own records. If you fail to do so, it can make it difficult for you to ensure that you (and the other party) are fulfilling your obligations. You shouldn’t rely on verbal promises made by the other party to convince you to sign the agreement. Only the promises and agreements made in the written document will be controlling.

While no two transactions are identical, below are a few basic elements that you should look for in a contract:

  • If money is being exchanged, the full amount to be paid should be clearly shown
  • Any finance charges should be expressed in dollars and cents
  • An detailed list of all services to be provided
  • All due dates or deadlines for payment or other types of performance should be provided
  • A detailed explanation of each party’s duties and obligations should be given

You should never execute a document that is incomplete or contains blanks to be filled-in later. You should also read the fine print. Even though it may be made to seem less important, it is still binding.

Entering into a legally binding contract is a decision that should not be taken lightly. A contract binds you to the other party for a period of time and it imposes a duty on you that you must be willing fulfill. If you do not understand the terms of a contract Faro & Crowder for the guidance you need. We will walk you through each provision of the agreement, protect you from unintended liability, and ensure that you understand what you are signing.


Important Topics to Cover in Your Partnership Agreement

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When you enter into a business venture with another party, it is crucial that you draft and sign a partnership agreement. Many partners enter into business together because they are friends and they don’t think a written contract between them is necessary. However, having an agreement in place can help avoid disputes as well as help preserve your relationship.

Although every partnership is different, there are certain terms that should be included in your written agreement, including:

  • Identifying each partner’s role. Having a plan for the role to be played by each partner in the business will assist in making things run smoothly. The agreement can detail how each partner will contribute to the joint venture, whether by supplying labor, services or financial contributions, so there is no confusion or misunderstandings.
  • Ownership. The partners’ percentages of ownership should be specifically detailed in the contract. Topics to cover include how profits will be allocated, draws will be handled, and distributions will be made.
  • Binding authority. The partners should agree how business decisions will be made. For example, you may wish to limit exposure to liability by agreeing that a partner is required to obtain the other partner’s approval before taking binding action on behalf of the partnership entity. The agreement should also outline the operational and management responsibilities of each partner, including what specific actions require a majority vote.
  • Dispute resolution. If a disagreement should arise between the partners, it is beneficial to have a strategy in place for how to resolve the dispute. For example, the contract may require the partners to go to arbitration instead of filing a lawsuit to resolve disputes.
  • Dissolution. If the partners decide to dissolve the partnership, it will go smoother if you the contract details the dissolution process.

Call us today to schedule your initial consultation. Our office is located in Melbourne, but we proudly serve individuals and businesses across the State of Florida.


Can I Enforce a Verbal Agreement?

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Many people believe that a contract must be in writing to be enforceable. While it is true that certain agreements are required to be in writing to be enforceable, some oral contracts are valid. Contracts involving real estate, marriage, performance over multiple years and the sale of goods over $500 are required by the statute of frauds to be in writing. If a verbal agreement is not one of these specified categories, it may be a valid contract.

Before you start relying on handshake deals, however, it is vital that you remember that you must have the ability to prove an agreement exists. Typically, having witnesses to the verbal agreement is helpful. However, if there were no witnesses to the oral contract, you can prove its existence by actions that were taken afterward. If either party immediately acted to complete their obligations under the agreement, it can be evidence of the contract. Additionally, copies of emails, letters, other correspondence or documentation between the parties that refer to the oral agreement can establish a contract was formed.

The safest means for protecting yourself, however, is to always get your contracts in writing. There is no guarantee that you will be able to prove an oral contract was made, so it is better not to take the risk. Even if it is a simple transaction and it is unlikely that you will be required to prove the oral contract, having a one-page contract is better than nothing. It doesn’t have to be complex or lengthy, it just has to be in writing.

If you need advice regarding contracts or other business transactions, the legal team at Faro & Crowder can help. Our office is located in Melbourne, but we proudly serve businesses across the State of Florida.


Breach of Contract Basics

Breach of Contract Attorney in Melbourne, Florida

In today’s face-paced world, handshake deals are a thing of the past. Now it is not unusual for business agreements to be outlined in 50+ page contracts. But, even with detailed written contracts, parties still break their promises. It can be even more complex if you are somewhere between a handshake deal and an executed contract. Can you still sue the other party for breach?

In determining if a contract exists, the court will ask several questions, including:

  • Was there an offer and acceptance? An offer is a promise to do something, or to forbear from doing something, within a specified amount of time. An offer can be accepted by either a promise or through performance.
  • Was there consideration? There must be consideration exchanged between the parties in a contract. Consideration must be legal, adequate inducement exchanged for the promise to do something that the party is not legally required to do or not do.
  • Is the agreement in contract form? The law sets forth certain requirements that must be met for certain types of agreements. For example, if real property is to be transferred, the contract must be in writing.
  • Was there capacity to contract? For a contract to be valid, the parties must have the legal capacity and competency to enter into the agreement.
  • Is the contract legal? The law requires the subject matter of the contract to be legal and not against public policy.

Not all contracts must be in writing to be enforceable. However, having your agreement in writing can save you from spending a lot of time and money in trying to resolve disputes. It can also increase your chances of recovery if there is a breach of the contract.

If you have a contract that you believe meets the above elements and you are interested in learning more about pursuing a breach of contract claim, contact us to schedule an appointment.


What Should you Look for in a Contract?

We have all heard that it is important to read a contract before you sign it. However, many contracts are full of legal mumbo-jumbo that doesn’t make sense even if you do read it. Yet, the law assumes that when you sign a legally binding document, you have read and understood it. As a result, if you read a contract and you don’t understand its terms, it is important to ask questions or seek the assistance of a lawyer before putting your signature on it.

You should never rely on oral promises that are used to persuade you into signing the contract. The entire agreement must be contained in the written document because it will be controlling. This includes all types of contracts including purchase orders, employment agreements and any other type of agreement.

Keep A Copy Of the Signed Contract

It is also imperative that you keep a copy of any contract that you sign. Failure to do so could result in the other party trying to take advantage of you. Additionally, it is difficult for you to verify that the other party is keeping its side of the agreement if you don’t have a copy of the agreement.

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What To Look For: Items That May Be Outlined In Your Agreement

There are many different types of contracts, but below are a few suggestions for items that should be outlined in your agreement:

  • The full purchase or sales price
  • Any finance charges should be set forth in dollars and cents
  • Any services to be provided
  • Deadlines for payments to be made
  • Detailed explanation of each party’s duties and obligations under the contract
  • No blanks should appear in the contract
  • Read the fine print – it is important too

Contact Faro & Crowder, PA

Entering into a binding contract is an important decision. Take the time to closely read the terms of the agreement. If you do not understand it or you have questions regarding how it will impact you, contact us to schedule a consultation.

Faro & Crowder, PA is located on Sarno Road in Melbourne, Florida.  We offer free initial consultations for Bankruptcy and Foreclosure Defense.

Contracts Every Business Needs

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If you own a business, it is imperative that you take precautionary measures to protect it legally. In other words, you need a great business attorney and contracts that protect your best interests. There is no easy answer for what legal agreements are the most effective, because every case is different. However, there are three main types of contracts that most businesses can benefit from having in place.

Owner Agreements

If you own the business with another party or parties, it is important to have a written contract between all of the co-owners. This is true whether you are a LLC, partnership or corporation. Common examples of this type of agreement are operating agreements, shareholders’ agreements, founders’ agreements and partnership agreements.

The purpose of ownership agreements is to solidify the deal made between the co-founders. They should cover topics such as ownership percentages, salaries, capital contributions and what happens to the business if the co-owners part ways.

Worker Agreements

Most businesses only use agreements for their employees, not for their independent contractors. However, an independent contractor may have access to your network, databases, website or financial information. Thus, having a formal agreement is essential to protect you by outlining the job to be performed, a confidentiality agreement to prevent disclosure of your proprietary information and non-solicitation provisions. You should also confirm with legal counsel that you are not treating your independent contractors like employees, because there can be stiff penalties for improper classification.

Vendor/Supplier Agreements

Depending on your industry, you may depend upon vendors and suppliers to meet your customer’s needs. Thus, it is important to have a carefully drafted agreement that helps ensure that your (and your customer’s) needs will be met and that protects if you they are not. You may also need a contract with your customers outlining the business relationship and providing legal protections.

There are other types of contracts that may be necessary to help ensure the success of your business, but the above contracts provide a good place to start. If you have questions regarding the agreements discussed above or you would like to learn more about the legal services we provide, call us to schedule a free consultation.


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