During the usual course of business, your company probably sends out and signs numerous contracts, relying on standard versions of contracts that the company has used for years. While your contracts might seem to be working well for your business, a close examination of those documents might reveal that your tried-and-true standards need updating. Below are some common reasons business contracts should be regularly reviewed and updated.
Changes in Technology
Regardless of your industry, technology is changing rapidly. Business contracts have to take technology into account, and the language in your current contracts might be outdated. For instance, if you or one of your clients or suppliers has started utilizing a cloud system, your contract should contain language about aspects of that system, like storage, access, delivery, and security. A contract that is silent on current technology leaves areas where you might be vulnerable to losses or litigation. By reviewing your contracts, you can effectively mark areas where technology has changed and where your contract language should be changed in kind.
Changes in Laws and Regulations
Though they arguably move at a much slower pace than technology, laws and regulations also frequently change. Depending on shifts in federal, state, and local contract laws and regulations, certain provisions and clauses in your business contracts might need to be added or removed. You certainly do not want to be caught in a situation where your contracts are out of step with the law.
Rather than trying to stay on top of legislation and case decisions yourself, you can engage in regular contract review and updates with your attorney. A review of your existing documents can easily catch gaps and potential areas of liability before they cause your company problems.
Identifying Areas for Improvement
Outside of keeping up with technology and current law, you should consider implementing a regular review of your business contracts to identify areas for improvement. You might need to do some benchmarking to make sure your suppliers’ prices and service levels measure up with competitors. The process could shed light on some dissatisfactions you can remedy through renegotiation.
In addition, you might find that your existing contracts do not align as closely with your business goals and direction as they did when first created. If your strategies or models have changed, your contracts need to reflect the same. Your business contracts are tools for maximizing your company’s performance, and they should grow with your company. A qualified business contract lawyer can assist you in reviewing and amending your current contracts, as well as negotiating better contracts for your business.
Larsen Law Offices, LLC, can begin your contracts review and quickly determine important modifications for the best interests of your company. Call Larsen Law Offices today at (303) 520-6030 to schedule a consultation with Denver contract attorney Susan Larsen.